For example, if your lease does not state that the tenant is responsible for ensuring the lawn is kept cut and clean, then you can't evict for a messy lawn... 

That seems a little excessive, and I usually go for the carpet bombing approach to renovation.

We have had few issues with any guests at all because of our policies, but the AIR people are the ones that are more messy, complain more and appear to feel more entitled.I'll take VRBO guests all day long over AIR, and would take VRBO as a platform also.

- I assume actively rehabbing the place (icky carpet removal, work to clean it up), as well as time spent planning that counts?

Hey everyone just to give an update on the game plan for this rehab now that it has actually started: Rightnow paint for cabinets and the unit is running around $300For the new countertop I decided to use pop and peel tile the high quality type to put over the existing tile and it worked out very well and looks nice including trim: $100*side bar about the pop and peel tile the have a very sheek black marble one that went great with the color scheme of the kitchen and I went ahead because it saved me about $500 on a new countertop* New vinyl plank flooring required me to cut some carpet to do it but the cost was not terrible at $700Electrician had to come in and put in a designated outlet for the dishwasher and the tankless hot water heater for the bathroom vanity since it did not have hot water. $350Dishwasher and installation: $650two ceiling fans: $200New Vanity: $200Total cost: 2,500 Increase in rent from $925 to $1200

The friends did not pay their share of the rent and ruined my carpet.  

Even when you replace the carpet its hard to get out.

My budget is 30-35k to put in to it. 20k will get it in good shape ( paint, carpet, inter door, crown molding replacement).  10k for upgrading tech, kitchen back splash, bathroom tile in the second full bathroom, design upgrades) and 5k for any surprises or cost increase.....

It seems like a messy situation.He will pay you rent - Is he also paying for the mortgage, real estate taxes and insurance?

It was hard, messy, time consuming and exhausting.