If someone was in the streets doing drugs or killing people would they call you - no.I would consider letting them out of the lease but if they stay i would squash this immediately and say I have no control over other peoples property. 

As always, your CPA should advise on thishttps://www.biggerpockets.com/forums/530/topics/1056436-clearing-up-confusion-on-tax-treatment-of-short-term-rentals

@Dave FosterShouldn't a caveat be said about State tax treatment? 

I'll try to be helpful and concise here without being too long-winded...ESPP - Typically you buy this at a discount (Usually 15%) typically you get beneficial tax treatment on the discount and won't have to pay income tax on it as long as you hold it for their required holding period.

Also my friend live nearby said the property is in a drug dealer territory.

We also have a crime free/drug free addendum as part of our rental agreement that is explained and signed by tenants.  

I do not get any special treatment or preferential deal flow by working for the company.

I had a tenant apply, but he told me he was charged with a felony for drug possession in 2018.

His soon to be exwife and ex stepdaughter reached out to me and sent a video of his stash but my attorney said it wont be any good since it doesnt have a recent timestamp on it or a video that he is using drugs in the unit.

Are they selling drugs?