If, any bad tenant could be evicted in a few days and held responsible for the damage they caused.

Sounds like they are dumping a bad 1031 property into a REIT and spreading the financial burden upon existing REIT members. 

Too bad other hosts don't consider the new expectations we're receiving not only from guests but also OTA sites.

I think the big question is how badly do you want to keep the extra $50k liquid?

They offer a $10K repair fund to fix damages in addition to SD plus warranty for appliance repair etc.I have no say in whom they choose to move in, whether there are animals, limit on # of occupants etc. they reserve right to inspect property so i have no idea if they can tell me to remodel, paint etc.does this make sense i have a vacancy coming up in October (bad rental timing).

They know they ins and outs of their property, and you bad-mouthing the property isn’t going to going to endear you to the seller.

When you have things that you do not know how bad they are until you open up pandora's box, it is hard to perfectly predict the cost.I'd be happy to have a more in-depth conversation if interested. 

Huge counterparty risk, I am just working through a scenario where a correspondent HML in the midwest got defrauded from bad diligence and their funding partner is having to clean things up.

Agents, tell me why this is a bad idea.

I do not think they regulate this strictly on other industries like food service, or even medical.Sounds like the mayor or city planner or someone "important" had a bad stay at a STR somewhere.