You can explain that any changes to the lease must be carefully considered, as you want to maintain the original terms that protect your interests.If you decide to allow the change, you could draft an addendum stating that each tenant is responsible for their own rent.

Your criteria should not include anything that would violate someone's rights as a protected class. 

That would give you more rent coming in per 'house' and also help protect against vacancies (ie one unit might be vacant, but you still have rent from the other unit coming in). 

Here’s why:Liability Protection: By having separate LLCs, you limit the liability to the assets of each specific LLC.

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.

Plus, protect our name.

Of course, you can't protect yourself completely, but this will also help you prepare for buying the next properties a little better, and it's an exercise I generally do when I'm on a showing for a property I'm serious about so that I'm factoring this into my analysis to some degree in a "capex" reserve.Capital ExpenseRoofWater Heater x2All AppliancesDriveway/Parking LotBoiler x2FlooringPlumbingWindowsPaintCabinets/CountersStructure (foundation, framing)Components (garage door, etc.)

On another note, you have some fairly restrictive laws regarding private lending, consumer protection (seller financing to an owner occupant) and loan servicing in CA state so make sure you are allowed to do this on your own and understand the licensure requirements to lend, broker loans, and service them as well.

Which is really the crux of my argument here to is people jump through hoops "thinking" they are saving the world but I still cannot get anyone with 2+ million members here on BP tell me if they use a property manager and have reviewed and gone through their insurance policy on the property tell me what could they possibly be sued for that an LLC would protect them from?

I put several contingencies in my contracts to protect my buyers.