The Rules and Regulations are going to tell you all the leasing restrictions.

Sounds like a scam to me - you make the repairs and the owner still holds title on a "lease to own" agreement....no thanks LOL.

I️ am getting concerned because she doesn’t have any leases and each room is already occupied.

Review their lease agreement and addendums.

For example, the asset may not be in a position for permanent financing due to low occupancy, lack of seasoned rents, or perhaps the renovation and lease-up have not been completed. 

Then second, check what your lease says or doesn't say.

As a landlord would you try to set up the lease contract to end at certain times of the year where you would avoid potential vacancy (like the summer or holidays)?

I am reviewing a property management agreement and came across this clause RE: Indemnification that seems too broad:INDEMNIFICATION:(a) The Owner shall indemnify, defend and save Agent harmless from all suits and/or other legal proceedings whatsoever and cost incurred therefrom in connection with the management of the Property and from liability for injuries suffered by any employee or other person whomsoever, except in cases of willful misconduct or gross negligence on the part of Agent or its employees, (b) The Owner shall indemnify and hold harmless the Agent from and against any costs, loss, expense or damage (including attorney's fees) suffered or incurred by the Agent arising out of or related to the enforcement of this Agreement arising out of a default or other breach by the Owner, the management, operation, improvement, alteration and leasing of the Property, including all other activities arising out of or related to Agent's duties under this Agreement or as a result of any act or thing done or permitted by the Agent or its agents or employees; provided, however, that such indemnification shall not apply to any such cost, loss, expense or damage to the extent that the same relates to or as a result of conduct by Agent which constitutes willful and wanton misconduct.It seems like if one of the Property Manager workers (aka Agent) slips and hurts himself while cleaning the floor the "Owner" is then responsible. 

BUT, the positive would be:+ Catagory A neighborhood with stable renters+ Betting on property value will increase over 10+ yr given the neighborhood+ Turnkey rental, leases in place till 2018Would these positives balance out the lower CAP rate?

The standard 10% usually covers tenant management only - advertising, screening tenants, preparing leases and renewals, fielding phone calls from tenants, collecting rent and conducting evictions.