You also need wording that you don't reimburse for service calls that the tenant makes without your prior approval.

For damages reported by the PM, shouldn't the damages be reimbursed by airbnb due to guest breaking?

I called them out on it, and although the township solicitor (attorney) agreed with me in writing, the township manager is still trying to fight back because he knows the township will end up having to reimburse many rental property owners past-and-present for years and years of rental license fees, plus interest, damages, legal fees, etc.The township manager is defending the township by claiming that our triplex is a "single-family structure divided into 3 apartments".

Maybe they'll throw you a bone.In the future, NEVER offer/agree to pay/reimburse/discount/trade or otherwise compensate a Tenant for any specific amount until AFTER the fact and you actually know REAL costs involved for all parties.

If the architect is at blame, their insurance may reimburse some or all of the extra costs.Municipal Liability, If the city or local municipality is responsible for permission or inspection errors or oversights, they may be held liable for some of the increased expenses.

They haven't agreed that this is an eligible reimbursable expense ("any funds that go to the seller are boot", they say).Paying the mortgage interest outside of escrow also doesn't seem straightforward.

When I sell the home I plan on using a 1031 exchange so I was wondering, is there a way the company will be able to reimburse me without me having to pay taxes on the reimbursement of $40,000 

You get reimbursed if that happens.

I have two places where the tenants can't put the water in their name, so I pay it and they reimburse me. 

It is a pretty simple investment for us as one tenant rents 60% of the spaces on a five lease that reimburses taxes and insurance.