A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

They are a custodian, charge a flat with no fees, and provide free audit protection.

Flat out, I realize we're friends/family, but I need this lease in place to comply with laws that require things in writing and for my protection should there ever be issues.

My goal is to avoid doble taxation, ability to write-off expenses, asset protection and avoiding probate.If anyone can help me with this or refer to an accountant who has experience with cross border real estate transaction, I'll be greatly obliged. 

Yet another reason, (albeit not in the top three) why all rental property should be in an LLC with a wife or child as a partner (even .1%) so as to file the Form 1065.Number 1 is liability protection, Number 2 is privacy, Number 3 is ease of transfer for estate planning, Number 4 is possible sale of the LLC to conceal sales price (also called drop and swap), Number 5 is having a single entity for financial reporting, Number 6 is brand identity.

Can we be protected without a deed transfer?

As for the property structure, using an LLC offers liability protection, while a land trust provides privacy.

In your contract, include clear timelines, quality guarantees, and protections for unforeseen costs or issues.

From real estate investors to other small businesses, I talk to people daily who have no idea about the potential liability under the Telephone Consumer Protection Act ("TCPA")(47 U.S.C. 227 et seq.).There are two initial issues that can create huge problems with your suggestion.

If for some reason they can't get this sorted out by the next payment date, you should figure out how to physically escrow that payment somewhere...this at least protects your payment until you're confident who it is supposed to go to in the future.