An overstocked pasture will destroy even a good fence. I wouldn't police the stocking rate so much as the starvation rate. Overgrazing can be good for a pasture (depending on what is growing there). You just have to keep the animals from declaring mutiny on your fences. I would tell him to remove some animals or to start feeding them hay.
Pasture renters have a very bad reputation around here. They come in from out of the area and outbid all the local guys. They promise the world, but just abuse your property. In the end, they don't even pay what they owe. If don't want to get screwed, rent to a local guy with a good reputation.
If he offered you a deal where he would pay you when he sells the cattle, keep in mind that the day he removes his animals may be the last time you ever see him.
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