We try to tell our staff to treat the owners money like it is your money.

Overall I would treat this investment as a high risk gamble and willing to accept loss if it failed but It's also a very interesting process to understand how the industry works.

.  ^^^^ As the old saying goes - 'we teach people how to treat us' 

Some are treated as expenses, and some are an increase in basis.  

This could trigger the due-on-sale clause, allowing the lender to call the loan, though some lenders might not act on it.You can still claim tax benefits like depreciation since a single-member LLC is treated as if you personally own the property for tax purposes.

If you treat it like a business that you are running, you can make outsized returns, but the same can be said about launching your own real estate brokerage and building that business, or launching a tech company, etc.  

The S Corp treats each property as inventory (think retail) and it works out to save me on short term gains. 

The deposit remains in place until they are out and is treated like a normal termination.About 90% of tenants pay the fee.

Treating this child like we treat everyone, as we hand the document to sign: "And this is the no smoking addendum, just be aware, dont allow anyone on the property to smoke here, inside or outside, its impossible to get the smell out of the house" How would you approach this?

We can't treat good tenants differently or raise some and not others.