The Act also prohibits harassment of anyone exercising a fair housing right and retaliation against an individual because s/he has assisted, or participated in any manner, in a fair housing investigation.

There is ample justification for you as a LL to exercise your rights, and protect  your property.

In this case I doubt its worth it, but it may be beneficial for you to run through it as a mental exercise.

There are so many ways to make money in the equine world from farrier to exercise rider on a track to teaching students to grooming for $500k+ jumpers to hunter jumper catch riding to managing a breeding farm to running a boarding barn to therapeutic riding.

Consider waiving the old fees and as others have said adopt a much higher fixed fee going forward to function as a strong deterrent, ensure the PM company enforces this and communicates it clearly to the tenant.Consider changing payment terms to weekly, bi-weekly etc to better match their cashflow, if you think it is beneficial to keep them and they are consistently late by the same intervalConsider your goals, landlords are in it to make money, but do not have to stomp out every puppy they see either, if someone is terminally ill or something, this is exactly how you ruin your brand/reputation.If the property still has positive cashflow and the cost of turnover is high, you should probably at least try to exercise the flexibility you have as an investor to keep tenants going through dire straits a chance to get steady again.

Approving which contracts to pursue, where to put the money, exit plans, etc - might be high level management, but it starts to evolve things away from "solely" only the efforts of others, especially if the operating agreement provides  a level of management control.It certainly can be an investment contract, but most often with a small 2 person partnership cash/labor partners it is not the case as the money man exercises a level of control over the operations by virtue of being the sole funder. 

I have seen some general documentation online to have the tenant sign a waver form and attach it as an addendum to the lease; similar to what tenants at an apartment complex would sign for use of common exercise area / common area pools.Any feed back from investors / attorneys that have some experience dealing with SF rentals with Pools would be greatly appreciated!  

I receive $1000 a month and am due another $21,400 if/when the tenants exercise the option.

The exercise is valuable if you have the opportunity to use those proceeds to create maximum equity on one or more of the purchases for purposes of tapping the equity for future acquisition or to have the security of at least one property owned unemcumbered. 

My option agreements state that any other agreement between myself and the optionee , if any, must be performing in order for optionee to be able to exercise their option to purchase.