1. Open communication with your tenant is very important. Keeping that line of communication open will allow your tenant to let you know of any property damage right away as well as you being able to be open with any concerns about the tenant's activities.
2. Perform a walk thru of the home prior to move-in with the new tenant and document the condition of the property.
3. Give your tenants the opportunity to repair damage they caused by hiring a professional to do the needed work.
4. After move-out, do another move out walk thru and document any issues that you might run into with the tenant that is moving out. Use the same form as the move-in walk thru for a side-by-side comparison.
5. Itemize deductions and send receipts and give them a chance to look over the charges.
6. If they dispute, make them sign a settlement agreement.