To mitigate this, you may consider keeping your books utilizing the accrual method while reporting your taxes on the cash method.

I would use insurance to mitigate risk in the early stages.

You mitigate the risk of a lawsuit by operating your rental activity in a professional manner.  

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

These can get very costly and if the carpet is over 5 years old or excessively worn or stained then replacement is a better option.Ozone can be use to mitigate many of the odor issues quite successfully  foggers can also work. both of these have side effects and can be dangerous if precautions are not taken. 

Should we let them do this blood drive and if yes, what should be done to mitigate risks? 

Have you considered Section 8 for one or more Units to mitigate your financial risk?

The goal is to provide safe and quality service while mitigating any foreseeable risks.

There are different ways to mitigate risk in this arena.

My question is will an LLC help mitigate reassessment if the children are shareholders?