We see a tightening or restricting of coverage, higher deductibles, more tedious underwriting requirements, and increasing rates.As far as deductibles specifically, it really depends where you are in the country. 

Hey Santosh,As of right now you're extremely exposed regarding insurance and I'm going to assume legally as well.If the home isn't registered as a legal multi-family with the town that's something you'll have to correct ASAP and make sure the home is up to code.Insurance wise as soon as they find out what you're doing they'll cancel you as the risk has changed from a single family owner occupied home to a multi family owner occupied home.

Make sure to get legal advice on what you can and can’t do for bill back and what kind of notice period is required in your state. 

With market conditions as they are I don't want to be too restrictive.  

Well anyone can write anything into a contract, but whether it is legal and enforceable is for the courts to decide...It is State law here that a contractor must call 811 or they are liable for the costs.

I am too lazy to look it up, but pretty sure it is legal.

I also prefer to screen the guests and set my own price/stay restrictions.

I understand this is not a requirement, but I have never received a damaged unit from an inherited tenant or any legal issues.

Questions Regarding Property Registration Restrictions in a Joint Venture Model:Are there any restrictions when attempting to change the property registration with the county (through the title company) if the property has an active Hard Money Loan or DSCR Loan?

Honestly, I would not sign any lease until you positively close and legally own the property.