The sink and countertops are totally functional, just a bit dated and some loud/odd color (purple) for the countertops.The hardwoods don't have any damage, but have a decent amount of wear.

I just don't see the point of doing major reno work with a tenant living there unless you have to do it due to damage that occurred (like we did - water leak damaged cabinets, we had to replace them with existing tenants still there).

Can you specifically mention that "while we can't accept a pet deposit, your security deposit will cover pet damage and any cleaning costs necessary to remove any pet odors"?

Insurance should be fairly cheap...interior property damage (since the COA covers the structure) and liability.

These are all major fixers, not basic cosmetic, but fire damaged, foundation issues, mold, plumbing and lighting fixtures 'recycled', horrid pet and smoking smells,  etc.

The consideration paid by Assignee includes a deposit of$_2500 paid by Assignor and being held by the escrow agent on the contract and that deposit is also hereby assigned to Assignee.BY THESE PRESENTS, Assignee accepts the Assignment from Assignor and agrees to be bound fully in the place and stead of Assignor by the terms of the above mentioned contract; and further agrees to hold Assignor harmless and indemnify Assignor for any damages or costs incurred by Assignor as a result of Assignee’s default in performance on said contract.    

Repairmen assess that that water from the fridge has damaged all of the hardwood under the fridge to the tune of $1400 or so.In this situation, I would assume it is pretty straight forward that their negligence in getting the repair guy in or properly defrosting the freezer to minimize water damage is the cause and that I could take that out of the security deposit.

This is just one data point, but a friend had a significant episode of water damage from a turtle tank that broke/sprung a big leak while they were at work. 

I believe it's unhealthy and damaging but I'm not everyone's mother.

In the end, they lose more money through below-market rents, damages, cleaning, broken leases, unpaid rent, etc.