However, structuring this in a way that complies with tax law would likely require expert legal and tax guidance, as it involves partnership agreements and IRS regulations.

We had to include language in their contracts when they renewed last summer detailing the terms of the deal.

Did you have any contracts sell?

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The thinking with the institutions is that you're not doing as much as you would on a $5M-$10M transaction as the sellers and buyers typically already know eachother, have teams to underwrite the properties, and have attorneys to handle the contracts.

Did they have a clause in the contract or something?  

In the process of coming up with a legal agreement between us, we cannot figure out how to address when we have differences on how to solve disagreements on repairs.

Told to have contractors sign the customers contract .

This reads like fraud...Mortgage fraud is investigated by the FBI and punishable by up to 30 years in prison and/or a fine of $1,000,000 --- (link)Bryan, there are perfectly legal solutions to your problem, call anytime.

Someone suggested going for a student housing rezoning permit but I don't want it to take up a huge portion of the time of my contract or cost exorbitant amounts of money..