The downside is that it requires you to develop your own forms, policies, etc.

I will probably pay up for non recourse loans, but the downside protection is probably worth it.   

- What are the downsides for the landlord, compared to a traditional residential lease to a family for instance?

Downside is that, per the location, it'll likely be three students and they don't always take care of the place as well as you'd like a tenant too.

I read on a thread from another site that the downside to this setup is that the receiver for the SmartConnect needs to be near the lock, and it requires a power source. 

The downside is that you can't modify your loan repayment.

Your downsides are more wear and tear, a business being run out of your home (is this allowed?)

The down side is length of time til you have a rentable property.

The downside is that this is a more expensive way for the sponsor to organize, so typically the expenses for the investor are higher.

The down side of using New western is that once you sign the contract and give them the earnest check you have no due diligence period and because the market is so hot now if you postpone signing the contract until you do your due diligence the property is gone, most properties don't last a full day, for that reason I think they are more suited to full time experienced rehabbers.