@Rachel Chioreanu your PMC is following the law.Let's say the property suddenly becomes uninhabitable or the tenant is a victim of domestic abuse, both of which would legally get the tenant out of the remainder of their lease.Where would your PMC get the rent funds to reimburse the tenant if they've already disbursed the funds to you?

Regarding your lease option plan, just make sure you follow NC state statute which came about largely because of abuses primarily in urban NC growth markets where option holders were screwed when prices spiked.

There’s obviously reasons that such a method could be abused in the wrong hands.

And, there is too much use and abuse of quitclaim deeds, they should never be used to convey a sale of property, except where a lender may require such, I don't agree, but they pay their attorneys big bucks to protect them so you may not have a choice.

I was a member of BP before I bought my first rental, and our first 2 tenants taught me a lot about screenings, evictions, tenant abuse, etc.

You will also need to factor in utilities as you will be paying those and expect some tenants to abuse it (or not use them wisely). 

I believe that would be the best, most transparent way to handle the consumer, however the majority of our clients are very new to the business, so they don't understand the abuse property managers can do to a portfolio.

To the guy who stated “especially heroin those guys are as good as dead... and we deal with this in the hood all the time“ etc etc....I work in the substance abuse and mental heath treatment field.

This will insulate you from price increases from service providers as well as service abuse from a resident.If you share utilities, you can install submeters or use a Ratio Utility Billing System (RUBS). 

He got burned in that particular market as he said tenants were intentionally breaking things & abusing the system so as to get out of paying any rent.