It puts you at risk unnecessarily. 

It’s possible your lender got the tax bill and paid the entire year (rather than just the first half installment), unnecessarily causing an escrow shortage and triggering a payment adjustment.

@Matthew Crivelli if we buy the property, there’s closing cost and holding cost which cut into profits unnecessarily IMO.

The lead in old paint is only dangerous if ingested or breathed.

The paint itself is mostly only dangerous when ingested.

In doing so they may want to be nice and fair, but they may be unnecessarily complicating the arrangement and creating future problems.A bunch of individuals holding a gifted or inherited property as straight TIC is often fraught with problems. 

Don't subject yourself to this unnecessarily.

Plus they may scare them unnecessarily.  

Prop. 21 is unnecessarily draconian and will likely cause more harm than good.

Then you have all the govt bureaucracy that is anti landlord with the multiple and unnecessarily  changing legislation.