For example, something terrible happens on this flip your considering and you are found negligent / liable… An LLC will provide for a cushion and offer some protection and in most cases, it will protect your personal assets (Not Always).

I would look at having the PM company pay for any additional fees/lost rents etc. as a result of their negligence in representing you. 

I have a bachelor military tenant, whom was negligent and never cleaned.

However, if your tenant falls down and busts their hip, they can only sue the property owner which is the LLC and not you (so long as you are not proven to be negligent or that they were not successful in piercing the corporate veil).

I think it would come down to if the tenant demonstrated negligence in the matter. 

It protects against business liability - but will NOT protect against negligence.

I can watch them in real time and check the feed from about a day into the past.Ultimately though, I wouldn't spend too much time making this decision as the "risk" to picking the wrong option is negligible.

probably not and trying to charge them for repairs due to their neglect is difficult to prove unless perhaps the tank is pumped upon move in with professional inspection report and then a new inspection shows negligence through behavior they were educated to not commit.

I hate that I could be considered negligent for not having a clause prohibiting business operation.  

@Shannon Cannon The price difference between what you offered and wanted to offer is likely a negligible amount of money I imagine...I doubt you suddenly upped your bid by $50,000.