If they are not managing it to your standards, hire a different property manager and let them manage it.

Standard real estate practices.

So in your case thats standard or frankly a bit better than those that force equity and have money.. the idea though of selling these to those that dont have the 50k in cash or ability to get it is what puts these neighborhoods at risk and to ask and investor to step in and buy the asset and then resell it for 3X that investor is taking a huge risk ..

The bottom floor is a permanent STR.At this point, living on the top floor of an STR no longer fits my life and while it has been somewhat profitable depending on the month, I can no longer handle the hassle of management and would be taking a loss if I used a standard airbnb property manager. 

This is standard business practice - just look up how many settlements the SEC makes annually where companies pay millions in penalties WITHOUT ADMITTING to any wrong doing.- Cash-for-Keys is another example of this!

Set it aside in a low risk mutual fund or even a standard savings account. 

-international tax if you make this move.

Are you providing a service to help the tenants abide by the contract and basic living standards?

Is there a standard amount or is it tailored to the project ?    

Is it standard practice for a PM to visit the home and see what the issue is before sending out a repair person?