The bigger issues that need to be addressed by the operating agreement are how you deal with disagreements. 

It is what is left after snow removal, cutting the grass, utilities, tenant issues, parking lot issues, property taxes, mortgage payment, etc. that make a difference.

If you had no knowledge and they broke the lease I'd issue a notice of non renewal, but give them the option to remove the cats.

RESOLVE this issue NOW and make a clean break. 

And it's not only homes, it's all the infrastructure a city needs.On the insurance issue, I think this may be the end of national carriers.

@Kayla Elliott  Hi Kayla - this was a commercial mortgage loan with a local bank, that held it "in house" after it was issued. 

If you go with the partnership route1) You need to manage the money going in and out of the business bank account.2) File a partnership return and be responsible for issuing K-1's3) make distributions to you and your partner for cash flow that you receiveYou will likely spend many hours on a nice gesture.I may want to consider instead to give a christmas gift or a bonus for early completion of projects.

just a question - does '1 hour to resolve complaint' actually mean resolution of the issue? 

Spoiler alert- Phx is quite a saturated STR area, and many STR's (although some are doing great) are having major occupancy issues. 

The issue I see most is the cashflow gets crushed by HOA fees and the added headaches of having them tweaking rules etc.