It's one thing to expect your tenants to have documented and IRS reported income (you're totally right that many tip based jobs don't report a substantial amount), it's another to state that anyone receiving disability payments will be denied.  

Damages typically include the displaced tenants relocation and housing costs for the period where they were wrongly denied access and may also include any property in the unit which you improperly disposed of.

If the seller denies us that we send a letter the day before closing and stop by the day of closing and try to hand deliver it.  

Been there...done that:)  BTW--their attitude is admit nothing, demand proof, deny everything.

By example would it benefit Landlord's to include a list of reasons an application will be denied without exception so long as all of those reasons conform to Fair Housing? 

I denied applicants who weren't truthful or who didn't complete the application completely, after being told it must be completely filled out. 

We try to connect the dots for them, but they deny everything.

Feel free to borrow ideas from them or modify them to meet your needs.The applicants you describe would not meet our minimum criteria to rent, so we would deny them and send them a denial letter, which in our state is called the "Adverse Action Notice."  

Almost all tenants I've met initially deny responsibility for any damages.  

Deny them the lease renewal