I don't think breaking a lease affects their credit, but you should be collecting a late fee if their rent is late (again, what does your lease say?)

How does he only accept cash, but isn't around to collect it?

I don't bother collecting late fees anymore and just go with 14 day notices if I believe it makes sense.Reason? 

Pretty impressive!!

To be honest, I hope I never even see the property, just provide a good, safe living situation for the tenants and collect some solid cash flow each month.All that being said, anyone have any tips for out of state investors?

You too can be a lender and collect monthly payments from the borrower/landlord.

Run for president of the HOA , start collecting the dues , file foreclosure on those who dont pay .You could buy the whole place .

im impressed!

But I'm just trying to figure out how the apartment complex collects and how hard it is for them to collect, I would just rather take the check for $400.

Your PM will likely have much more time evicting, damage to the unit, travel  to collect rents multiple times, additional bookkeeping costs, etc.I have seen PM companies in rougher areas charge 12% average before.