If I do pay the bill upfront, and then charge the tenants based on my RUBS system, are there regulations that would prevent me from allocating cased on the number of people in each unit rather than the number of bedrooms in each unit?

Money is the only thing to prevent you from holding it off the market and then disappearing.I require a full month of rent within 24 hours to reserve a rental and I will only hold it for 7 - 10 days before I expect you to start paying rent, utilities, etc.

What does this solve for me: it prevents a fine from the local municipality or prevents the local municipality from sending their people to clean up. 

In an article by Brad Beckett: Director of Education & Outreach, National Real Estate Investors Association, The CFPB wants to prevent Foreclosure until the end of the year. 

Is there any legal barrier preventing the QI from just taking the money and run away?

I've had these fights before and sometimes it just takes pointing out the problem the the Tax Collector or the County Attorney to get the situation prevented in the future.

This would prevent anyone from having to stress about whether rent would be paid or not.

You are 100% legally aloud to rent your rooms as soon as you'd like after purchasing, the only thing that would prevent you from doing this is if there is some local codes that prohibit a certain concentration of people living in a home. 

I was hoping that the Quit Claim would prevent us from paying capital gains as it shouldn't be a sale.

Lease term, renewal stipulations ETC)What grounds for denial do I need to provide to legally prevent this from happening if I don't want to move forward?