If it is the normal stuff I would let it be and plan for the needed repairs to get it occupied. 

Normally, we do not recommend keeping a home warranty after the first year unless you have an expensive item that seems likely to fail - for example, the HVAC.In general, property managers hate working with home warranty companies.

Account ClosedThere are normally two ways for more than one individual to own property1) Tenants in common2) Entity owns the title and there is paperwork that indicates that you both are owners of the company(LLC, LP, GP, Corp, etc)You need to report income if you are receiving rental income(regardless or how ownership is held). 

In the north east we normally see Gas, Oil, or Electric.

that is what we normally do but I do market it as having the generator so that water and heat isn't an issue in a storm.   

@Kelly Natkie the normal hard money market charges about 10-12% with 1-3 points up front. 

No agreement covers what the managing partner can do - go gamble at craps your odds are better at making a return than in a real estate partnership.

This may be less that the LTV that they would normally approve. 

Does any of this seem normal? 

You are correct that if this is being used there is no leeway for you should the tenant vacate leaving damages above normal wear and tear.Your tenant is "stuck" paying the rent for November.