STRs also avoid automatic classification as passive if rented for seven days or fewer per tenant.To maximize tax benefits, maintain detailed logs of all hours worked on activities like tenant communication, cleaning, maintenance, and marketing.

You manage the headache of guests and communication, cleaning, etc. and he provides the property, but shares in the expenses and profits.

TBH I don't know whether that means I have the right to expire this lease or they're completely responsible for all expenses.I like my tenants, they're always paying on time & communicative.

From there, I would like to consider a 1031 exchange in the future to acquire more units.My current property management company suggested that they could handle a mid sized apartment building but I would absolutely not consider them for it as I believe they have overextended themselves and communication is lacking.

You also want someone or a group that are not only knowledgeable but are timely & have good communication skills.

Poor communicators, poor housekeeping skills, prescription med abuse, big dogs that they couldn't properly care for, damaging, etc.

That can make it easier to communicate the opportunity effectivelyTo expand efficiently, consider targeting local real estate meetups or investment groups San Diego has a strong investor community.

Owners do NOT pay PMC's enough to risk violence.4) How is their inconsistent communication really negatively affecting the management of the property?

My business has access to AppFolio, but it doesn't seem to communicate with the STR side of things. 

I always cover my experience, the brokerages experience, and expectations with communication - 9 - 5, M-F, 24 hr turnaround during business hours, and the owner can reach out to me personally when the team isn't present.