If the tenant breaks their lease after three months, you are obligated to find a new renter, only charge the original tenant for rent up until the new tenant takes over, and then refund any unused funds.

However, this is a difficult qualification to meet, especially if you have a full-time job outside of real estate.Don’t worry if you aren’t able to qualify for REPS status, because there is another strategy that is referred to as a “loophole”, which is the STR strategy.Per Section 1.469-1T(e)(3)(ii)(A): there are six exceptions where your rental property income is not automatically considered to be “rental activity” and thus may unlock the door for being able to offset these losses against your active income.The average customer use is seven days or less.The average customer use is 30 days or less and significant personal services were provided (for example, daily housekeeping).Extraordinary personal services are provided, regardless of the duration of customer use.The rental is incidental to a non-rental activity.The property is available during defined business hours for non-exclusive use by various customers.The property is used in an activity conducted by an S Corporation, partnership or joint venture in which the taxpayer holds an interest.If your property qualifies by meeting one of the exceptions above, the next step is to demonstrate material participation in the rental activity.

In total over  100+ hotels were managed with millions in revenues, a large corporate structure and a large staff.

Some Maricopa constables said changes in the way large corporate landlords do business are contributing to the increase in evictions.

Understand that MMLLC will have a partnership tax filing obligation without any tax savings.

Is one local franchisee with no corporate guarantee and the other is a corporate store?  

If your property is in an S Corporation the "distribute" or "sell" or "fixing cost" of the property might impact your tax situation.

If you want to keep it, maybe it could be worth retooling on your STR market and marketing (inexpeienve) it for a Corporate Retreat or Small Destination Wedding Venue.

.- Set up a new management entity taxed as a C corporation, which can be fully owned by my revocable living trust.

Guidelines are in Appendix A to Furnisher Rule Part 660    Can you meet that obligation through frontlobby or would that mean you are limited to court judgements?