The why will out weight the risk you see.

Your major gains will come from appreciation, debt reduction, and tax benefits. 

If prices do return to normal levels, we're talking about a 60-75% reduction.

This means that the value my listing agent brings over my competitors' listing agents is about 65% reduction in DOM and about 10% increase in revenue (likely translating to at about 30% increase in profit).

Regardless, of how we perceive his success - from a statistical perspective and how much weight we give his words - he's certainly an astute and prominent (an understatement, if there ever was  one 😀) individual that's given to pithy remarks.

Owner will maintain a spreadsheet of renter’s materials purchased and rent reductions applied and provide renters with an updated copy of the spreadsheet on or about the 1st day of each month.Condition of the Rented Property: Renter agrees to return the property to Landlord in substantially the same condition as it is now.

My real estate agents are worth their weight in gold!

I'd let them know you'll not be renewing their lease, you are going to a limited pet / animal policy, 1 per unit, adult weight limit of 20 lbs. .. or better yet no pet policy.Until then they must provide proof of insurance that cover them for their dog and I'd check again with your agent and see what their thoughts are,, I bet your agent says, to get a remove this animal as soon as possible and then you'd have to give them a mutual lease termination to show compliance for your insurance company until they are gone. 

I expect the first leg will be an increase in price reductions and listings, followed by missed payments, then foreclosures.

I think you're assigning a lot more weight to that chart than was intended.