One tenant however, did refer to having their rent pro-rated by the number of days that the situation would last.There is a clause in both their leases that they are responsible to carry renters insurance to protect their personal belongings against fire, theft, flood, loss of use etc. 

If yes to invest in NY, what would be the recommendation criteria that I can implement to protect me to some degree.

I had it customized to my business with a developer.

The intention behind this legislation is to protect tenants from excessive financial burdens.

I think the convivence factor for the customer isn't there. 

I feel like I need to stay and supervise every second to make sure personal property is protected.

I usually provide a variety pack of command strips and those felt furniture leg things at move in to protect my floors.

Is it liability protection?

There are Lease requirements, Insurance requirements, etc. that you need to incorporate to protect yourself.

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.