We run a 98% occupancy at any time, guarantee all tenants we place by paying for their evictions (we evict less than 1% of our tenants annually), but most importantly, we understand that our clients' properties are highly valuable investments, and treat them as such.

I get the feeling you are treating this more like a startup and less like RE investing which your background (and mine) makes us prone to do. 

I didn't like thinking like this but I do own a rental property and there was no way they were just going to stay there with no documentation, it is as much for their protection as it was for mine and the property.If you do this you should call your insurance company to verify that you are covered if there are any problems.Before we got to the point of signing the lease it fell through so I never went through the process completely, but I treated it as a landlord tenant situation.From what I read it happens a lot with no issues..but that  1% chance something should go wrong....

[Note: Once/If your real estate company grows to a size where you have 5, or more, full time employees, you will be considered an operational company and will be treated as a CCPC.] 

While rehabbing a property prior to putting it on the rental market, are holding costs added to the basis as a capital improvement or treated as deductible expenses? 

How do you think they will treat your rental?

I have had two spend the last two weeks in a hotel as the apartment I rent is being treated for mold.

However, when I get money from the rent then this will be taxed again and treated as a qualified dividend (15%). 

Rent to own has been attacked by Dodd-Frank, predatory dealing and lending laws, accounting changes, how insured banks/lenders may treat credits to a sale price, how appraisers may appraise a property with an option contract and how equitable interests are treated in eviction and foreclosure requirements, to mention a few of the current issues.Short of saying "if you try to do a rent to own today as a seller, you're an idiot" don't know of a clearer way of saying stop doing rent to own contracts to tenants!

My treat!