Tenant agrees not to park and/or store any recreational vehicle, trailer, company owned vehicle, furniture, appliances or any other property on said parking space or said carport without prior written consent of Landlord.Unauthorized vehicles or vehicles parked improperly are subject to tow.Tenant agrees to follow municipal code for proper parking on the street.VEHICLE REMOVAL.Without notice and without liability, Landlord may order removal of any vehicle from any parking space or carport which is unauthorized to park on the premises, is parked illegally or which remains inoperable for a period of fourteen (14) consecutive days.Any vehicle owned by Tenant and remaining on the property after the termination of Tenant’s right to occupancy may be immediately removed by Landlord with full immunity from damages for such removal.Tenant agrees to indemnify Landlord for towing/storage costs incurred.VEHICLE WASHING AND REPAIR.Tenant agrees not to wash or repair vehicles on the premises without prior written consent of Landlord.Activities that cause excessive water runoff, a disturbance to the neighbors, or a public eyesore, will not be permitted.

Maintain good communication with suppliers to manage expectations.4) Inventory Management: Implement efficient inventory management practices to avoid tying up excessive cash in inventory.

However,  Depreciation and repairs will offset your income and if those costs are more than income then the remainder is used the next year and so on until the property is sold then the excess is used to lower your cost basis of the property when figuring capital gains.As for the LLC question.  

Typically you perform move in checklist noting condition of items in every room, then at move out, if there are items that are excessively dirty or excessive wear, then you note that on the move-out checklist. usually you back this up with photos noting areas of excessive dirtiness.

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

Is there an appetite for something like that? 

@David Rende  I'm not a CPA or Tax attorney, but maybe you ought to look into claiming "real estate professional status" with the IRS.Sec. 469 [of the IRS Code] provides that losses from a "passive activity" may only be used to offset income from a passive activity, with any passive losses in excess of passive income for a tax year disallowed and carried forward to the next year.

You can build a reserve fund with help from security deposits and excess rents.

Somewhat of a specific niche, but also an opportunity to get in at a decent basis for a group with the appetite for value creation.