., the expectations should to be brought forth before they move in so that there is no misunderstanding. 

You as an investor also shouldn’t be greedy and it’s a perfect match :) (To prevent a misunderstanding: I knew the property was being renovated and unoccupied at the time of purchase, they've informed me during the offer.)+ In my 2nd property a well pump issue showed up after the renovations have finished.

This is a common misunderstanding of AB 1482, The Tenant Protection Act.

You're also misunderstanding and heavily conflating some basic tax concepts.its either passive or not.Yup.If its not, its trade or business income.You're conflating two different concepts here. 

Maybe I'm misunderstanding how the process works? 

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.

I totally agree and had he listed 'prepping caulking and taping house exterior' as a separate 'project' and 'painting house exterior' each with its own separate respective labor quote, I would then consider.However since he and I have discussed the CSLB limit time and time again, yet he still had the nerve to just simply list (on a spreadsheet) $500 labor for painting the house alone, and handed me the sheet with a statement that my compensation is not 'fair', the long and short of it is this person who I consider a friend, isn't any longer a viable handyman for law is law, business is business, and fair is fair.Note: had he quoted something like $400 or something for painting house, I would be glad to negotiate with him (ie, maybe he was under the misunderstanding that $100 would be enough for paint) but he didnt. 

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.

West Allis is particular, which was one of our hottest markets last year.Most people misunderstand the consequences.

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.