Unfortunately, inevitably folks think because you and are are investors or real estate companies, that we are responsible for their negligence.

I don't care what you have in your rental agreement, if it appears that you may have been negligent in some way, that rental agreement isn't worth what it's written on. 

If owner terminates the agreement for a reason other than property manager’s negligence the owner is required to pay the lesser of (i) 4% of the remaining value of an active lease, or (ii) 4% of the value of 12 months of an active lease.For example, if we are receiving $2,700 per month for both duplex leases combined and decide to terminate the lease with 6 months left in a 12 month term then we would have to pay about $650 just to terminate the property management agreement!

Then he came down a bit, saying that other tenant's usage is very less, it is negligible, etc.

They often think an accident is different from negligent in terms of responsibility - it's not.

Their lawyer admitted to me on the phone that he knows they are negligent, but again, not much I can do, Nick wouldn't even pony of for a refund.Any advice would be greatly appreciated.

I do intend to set them up in separate entities in the future but since I'm just starting out the expenses are negligible.

@Jake Noreau again, I'd urge you to do a month-to-month lease rather than one that gives them until September, since there's a non-negligible chance of problems with the tenant.If you want to tell them verbally, "We're doing this month-to-month but if you want to move out by September 1st we can both plan for that" then that's great.

April data will be interesting to see:#NEFAR March Real Estate Overview: Prices and Sales Still Strong Despite COVID-19~ 2,672 home sales, up 2.1% from a year ago and the most sales since December's 2,746~ average sales price $287,210, up 6.7% from a year ago~ $243,635 median sales price, up 5.9% from a year ago~ 70 days on market until sale average (71 days a year ago)~ 8,375 in inventory, nearly 15% less than a year ago~ 3.1 months of inventory, was 3.9 months in March 2019~ 14.2% of sales were for more than original listing price2020 NEFAR President Ron Harris said, “COVID-19s impact on real estate sales in Northeast Florida in March was negligible.

@Heather Collins carefully consider your property insurance policy via an experienced local agent, get a larger high value highly rated umbrella policy, and consider creating a separate property management company that would fall on the sword in instances where there was purported property negligence or related.