But not everyone is willing to turn over control to a third-party like that nor is everyone able to do the appropriate due diligence.

Seems to be there was a bad judgement on the rehab from all parties.

HI @Ananth SubramanianI have not been in your shoes but have read others that have and from what it sounds like getting the judgement is the easy part and physically collecting the $$ from the tenants is the hardest most impossible part. I

She's not going to have any leg to stand on in court if you get that far unless there's some explicit language prohibiting the owner from assigning responsibilities to another legally authorized party, and I'm guessing there isn't if another PM company was maintaining the lease and provisions - and the fact that the tenant was voluntarily working with the other PM confirms the acceptance of an authorized agent even if it's not explicitly stated, the same way if you accept rent from a tenant after a lease expires you imply acceptance of the lease terms continuing (which is why you should always have a holdover provision). 

A more realistic expectation is 24 hours which will ensure we can arrange any repairs or corrections with a team, handle it in person, etc.This part is ridiculous. 

Unless you're partying in Hawaii and picking real estate without doing any due diligence at all.

Additionally, when a problem arises, those problems get addressed and all parties involved are updated.Being a property manager is a hands-on / high touch vertical.

Even if a title company were to manage the setup making sure all parties are paid, the cheap debt and cash flow would not be enough to be enticing to any investor even if midterm rental could yield a healthy return. 

.: I would never give the party on the opposite end of the transaction POA over the property, or my social, DOB etc.

At this point, I want to save anyone else from experiencing the loss of money and loss of confidence in their ability to judge and trust 3rd parties.