We will continue to have an influx of transplants from high tax, high regulation states like CA and NY. 

There's a to unpack here - preparing the property, pictures & listing, finding a management company, taxes, regulations for the area etc.

There will always be bad actors, you will never regulate malintent away.

Navigating NYC's zoning regulations can be complex @Jon Pflueger, especially in M1-2 districts, which are primarily designated for light manufacturing and commercial uses.

There have been multiple revisions this YEAR alone for state regulations that most leases online will not have updates on. 

For non-primary residences, they have to follow all of the following rules to receive a permit: - the property must be a minimum of one (1) acre in size (designed as a precaution to disturbances)- The building standards of the underlying zone district must be met - Adequate parking is provided - Defensible Space requirements are met - Valid water and sanitation must be demonstrated - No more than five (5) bedrooms are in the dwelling As time goes on, they continue to become more strict on the rules listed above here, and are actively regulating it.

When you engage with a new vendor, have it be a standard procedure that this worksheet or packet be filled out with documents provided before you will engage their services.

I have also asked them for a procedure on how to pull out the investment I have with them. 

There's plenty of regulation surrounding the STR industry, but it's perfectly legal and welcome here.

Definitely go the legal route here, don't rent out the basement unless you have the OK from the relevant authorities--it's regulated for a reason (fire safety, carbon monoxide poisoning, etc.) and your insurance will not have your back if something goes wrong.