I'm thinking there is going to be enough damage to eat up the security deposit so she is atttempting to get ahead of the game and basically not have to pay for any repairs by using the deposit as rent.

I always explain to them that I need to go through the house and make sure there is no damage.

I have done infill projects in the past and they are total brain damage.

In my experience landlords eventually run into tenants that cause substantial damage and you have to plan for this as well.

Since you'll be living there with them you'll be keeping an eye on them and they'll be less likely to do damage.

Factor in time, attorney's fees, possible damage to the propertyWhat is the cost of finding a new tenant?

The only difference is that now the landlord has leverage to keep money for court costs and damages that they otherwise would be chasing from an evicted tenant.

Yes market rents might by X dollars higher but if raising existing tenants' rents to market causes a third of them to move out how long will it be until you're actually money ahead (and recovered from the brain damage)?

Well as it turns out the property has suffered significant wear and tear damage including damage from tenant negligence - repair items that could have been managed at a lower cost had they been brought up sooner.

But I would like to minimise the number of holes cut in walls so as to limit damage and expense.