They will also be able to handle any closings/title work.

Reduce Vacancy and Bad Debt.

I am wondering if anyone has been and this situation and has ideas on how to handle this.

This tells me two things: Obtaining a variance will be more difficult because there are already policy considerations in place intended to reduce density & (2) There is clearly an over supply of rental units in this area otherwise the overlay would not exist. 

Most emergencies need to be handled immediately.

You can use petscreening.com to handle this task for you and ensure you are compliant, but I still recommend you really understand the law so you can answer questions or assist with requests. 

I started to change my mindset, and figure out ways to work efficiently and reduce work stress. 

I noticed I had vacancy in the column twice, so I reduced both to total 8% like you suggested.

There are many other angles also you can take to both increase profit, reduce risk, etc.

It is handled more like a traditional mortgage at closing through title.