However I would not consider them to be truly passive because they do not put any skin into the game like a good passive investment does (via a sizable coinvestment).

Taking that money out and anything that leads to more people using the equity from their homes and reduces the friction to that process is not good in the long run.As a NPL buyer who buys 1st position mortgages, we do watch stuff like this carefully as the moment these borrowers get high CLTV's any drop in pricing and change in economic conditions will lead to more foreclosures versus bankruptcies.

Stay informed about any new construction or development projects.Investing in student rentals can be a lucrative niche if approached with careful planning and research.

Be careful dealing with these people.

If they don't charge, then they won't have any incentive to take care of these repairs with urgency, as it would be extra work that they have to do without compensation. 

As with any Real Estate purchase, you need to read the documents carefully.

What I don't really care for is the implication that I'm somehow suggesting to anyone how they should do business.

I think this is going to be in most states. good information and we should all (continue to be) careful about this going forward!

Or did the team take care of them?

There's also a lot of landlords who don't take care of their tentans and properties in this market but continue to raise rents.