The best thing to do would be to consult an attorney, but likely, that is not an option for everyone starting out.I'm not an attorney, and this is not legal advice, but some of the information that we include in our contracts is:- A clear scope of work - Payment schedule / Milestones- Change order approval process- Allowances for finished materials- Reasons to terminate the contract- Expectations for start date (X amount of time after final plans /permits are received or X amount of time after the contract is executed)- General schedule and timeline (This is where you could specify an end date - however it may be better use incentives rather than liquidated damage if your general contractor is late - we've done both, but found General Contractors respond better to getting something if they get done early instead of being punished for being late. 

Best,Drago

Best,Ryan Cheek

Best,Ryan Cheek

What would be the best way to approach the issue?

This way, they can continue to receive steady monthly income without the headaches and responsibilities of managing the property themselves.Of course, I always recommend sellers consult with their accountant to fully understand the tax benefits, but many I’ve worked with have found this to be an appealing option.

- Owners assume all PMCs do everything the same way, which is not the case. - Many PMC's use software to approve applicants for speed & to avoid Fair Housing violations.

How do I approach it in a financially smart way?

Either way, it doesn't make logical sense for the IRS to allow them the $500k married exclusion on both properties.

Text messages and phone calls go a long way here.