Thank you in advance for your responses. 

Wow, what a bunch of great responses and valuable info.

David Turnbull This response can not be responded to in one email as t would be equivalent of writing a book.

Your response makes me think that I'm just over thinking things, looking for the "right way" to do something when there may not be a "right way".

The fund may withhold the taxes on your behalf, so you don’t have to pay them, or you may be responsible for paying them yourself.

I’ll leave my response to him up to your imagination.

Who is responsible if we need to have servpro (or similar company) come and dry the basement out and check for mold? 

Tenants who aren't responsible enough to habitually pay their rent on time (or at all), are much more likely to also be irresponsible in how they take care of a place.You wouldn't necessarily think those two things are related. 

Thanks for your response! 

It's not just personal credit at jeopardy here, an owner is responsible for providing a safe and healthy living space which means fixing things which means additional capital.