The owner is totally firm on not allowing pets and personally I think this is a grey area. 

To be honest, and not parrot this REI is financial freedom dream. 

. - Miscellaneous Fees | What do they charge for pets?

S1 has a cat and a pet squirrel living with him.

That include dog bite as well.Do I ask her to get a separate pet liability insurance or current renter insurance with 300k liability coverage mentioned above would suffice?

My tenants have different wants/needs from me - some want an affordable place, some want to live near the college, some downtown - I on the other hand want a yard for my family/pets, want a bigger area for my shop & home office.Additionally it doesn't make business sense for me to strive for perfection in my rentals because tenants will invariably mess something up - they don't care about your house like you do, so they won't treat it as you would (this is a case by case, but generally speaking this is what I have found, I do have some that do awesome - fix small things, mulch the flowerbeds etc).

Pets are a far bigger problem re wear, and the kids need to be well mannered/quiet in MFUs, but the 2/1s have cash flowed nicely for almost 20yrs.

That's my pet peeve. 

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.