It is usually better to take the tax hit today.Disclaimer: I am not a lawyer, CPA, etc....

Legal zoom is always easy, or many states let you form automatically online for cheap then you can have a lawyer write up an agreement. 

Anyone with corporate rental will definitely have a lawyer review their side of the tenant agreement.

@Bryce Pryor I would definitely connect with a lawyer to make sure you fully comply with laws in your area.

He started threating to get a lawyer involved claiming there were things we didn't disclose about the house, which is nonsense. 

I am a transaction coordinator for investors  and for people who do not have contracts this site has many and the lawyer is reputable.

I'm not a lawyer just an insurance agent / property investor so I can't tell you the why - just that is the way it is.I have seen my landlord client's get the demand letters for tenants dogs biting someone two times.

If they can’t or won’t help, you will have to call a lawyer to help you through the process.

As per our lawyer it is legal…I also itemized a list of repairs/remediation for my own kicks (odor removal, patch and pain holes in walls, scratches in floor from dog…) they have $8.89 left according to that.Either way...big development!!!

I strongly recommend you get in touch with your landlord/tenant lawyer and find out the exact procedure you need to follow.