I wasn't sure what category to put this in and I am not ready to name names quite yet but I am in the middle of a very frustrating RE deal. I would like your input on some things I have just learned.I am a former flip...

The reason is that is by state law you are considered an intermediary and not a principal, you are required to comply with the rules governing the behavior of licensed real estate professionals when running your wholesale operation.

Cons- It attracts unwanted behavior. 

Rewarding tenants for good behavior (i.e...doing what they should be doing) just creates the expectation that they will get something every year.

I'm 100% occupied too so I'm well-versed in tenant behaviors, tastes and market demand down to the subdivision level.  

Good reminder that you make and set policy not just in the lease and rules but also in the behavior and actions of the manager/landlord (no repercussions=no compliance)...Best of luck!

Renewing your lease with the tenant who is paying gives that tenant some control/power in the situation and rewards good behavior (i.e. paying rent on time).

Bankers will never be entrepreneurs and because of that their behavior is quite different than ours,, haven’t you noticed?

Seems to have stopped this behavior. 

He has shown this kind of behavior before (not at the beginning of course, always so proper) but I've always stick to the facts and highlighted the contract when needed.