.- You will have to come out of pocket for the arears, fees etc, just to get into "contract" some times $20k or more and all you have as protection is the word of someone who's proven to be unreliable and a signed piece of paper... 

Figure out ways to enforce rules to protect yourself and the other renters.

IANAL, but just had a call with them and signed up for a holding company registration, and an LLC for a LTR in South FL that I have been running under my STR property LLC, registered in another state (which I don't think was giving me the intended protections for the FL property).

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.

An investor always needs to protect themselves and NOT rely on what others tell them.I don’t think we’re talking about the same thing.

In these instances typically the lender will pay it to protect their interests. 

(Unfortunately, the investor fell for this gimmick and did NOT get their own 3rd party inspections, appraisals or even visit the properties they were buying, against our best efforts to encourage proper due diligence and follow our check list for their own protection.)So now some people are stuck with properties worth half what they paid (not all RWN members), with no renovation done, and constant repairs and vacancies. 

The tenants should have renter's insurance to protect you.

A business line of credit through your LLC protects personal assets, builds business credit, and may allow interest deductions, but it might be harder to secure for a new LLC.

Consider forming an LLC for liability protection or an S-Corp for tax efficiency if flipping frequently.This post does not create a CPA-Client relationship.