Once you understand a little more about the legislation and laws in place the tenant laws will not be so scary.For a 10k a month cap rate you are looking at inventory that would either be a luxury single family home or a multifam that would be 4 or more units.

California, to my pleasant surprise passed a new law that went into effect January 1 that allows property owners to file a Letter of Agency with local law enforcement which notifies them that the property is vacant.

Tough one....On the one hand you want to enforce rules.

For example, certain liens will not go away such as property tax liens, code enforcement liens, certain city liens, etc.  

If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.6.

Even so, if you aren't submitting any claims to CMS I wouldn't be concerned about legislation.

You think they just don't enforce it anymore?

Since then HOAs have learned and are experienced in enforcing their rules, regulations, and declarations.  

As a result we can expect legislative initiatives in the future that place curbs regardless of legitimacy of any individual transaction. 

It's possible the deceased father agreed to let her manage the property and keep the rent net for her troubles, but the title/ownership remains in him so his heirs would inherit it as a legacy.I suggest your friend familiarize himself with the statute of frauds which I believe requires agreements regarding real estate be in writing to be enforceable.