I dont see it as a major issue and maybe it might even be stronger then a regular lease agreement.Also keep in mind the end user for these types of properties will likely have issues on getting their own mortgage which will come down to lack of downpayment, credit or income..

I just started exploring northern Arkansas from somebody I know who leaves there and will seek to compare many markets to get stronger feel.

Expired Listings and Cancelled Listings are stronger leads.Call me!

An operating agreement is not required for a SME but my understanding is that the entity could be stronger if there is one and the owner actually follows the provisions in their operating agreement.

Generally you'll get a better class of tenant, less turnover, less maintenance, and possibly stronger appreciation depending on the area you build in. 

You don't want negative reviews.The other option is put stronger messaging around the road into your listing.

if the cops come to handle a trespassing call, and the unit is filled with their furniture, they will assume they have established residency and they wont arrest. if the cops show up and there is a broken window and an empty apartment, you have a much stronger case for trespassing.

So the rental market may be stronger than the homebuyer market in some areas, especially anywhere with commuter lines to NYC (bus, train).  

Those folks who are active and visible build stronger and larger networks, which in turn - more often than not - results in more business and opportunities.

You basically just said that they have more resources and are leveraging those in an effort to gain an even stronger position......that is exactly how capitalism is supposed to work.