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

So to protect our cash we also need to be in a position to close on the underlying dirt.. 

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

A lot of people in the current fire area had their insurance canceled lately and are really screwed, Reminds me of Florida and the insurance problem caused by the hurricanes. also thing of the Lahina fire on Maui there was no forest there freak down slope winds and buildings that were built with very dry timber with no fire protection in mind.. this stuff happens.

Work with a real estate attorney to draft a formal agreement that outlines responsibilities and protects both parties. 

A combination of extremely tough long term tenant protections and the economics of short term renting being a lot more attractive. 

Also make sure to have owners add you to their property insurance policies, so you have liability protection. 

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.

Maybe they've been burned by landlords in the past and are being very careful.You can legally reject them based on personality, facial tattoos, body odor, or other factors, but you better make sure you can prove that it wasn't based on any protected class like race, religion, familial status, etc.

This could help protect against any future lawsuits.