I heard that city goes hard on violations if any.

Have rules and policy that YOU follow and expect the same from them.This is where so many self managing landlords get in trouble with fair housing violations by not have strict adherence to their policy and treat one tenant different then the other or they are not consistent with the signed contract (the lease)I think being a business, upfront honest and having rules, policies and procedures is key for long term sustainability.

Sounds like you would be violating the rules if you are not the owner.

On February 1, 2017, Measure JJ (Renters Upgrade Act) became law, which introduced the following tenant protective measures:Landlords must obtain Rent Board approval before imposing a rent increase higher than the annual permitted increase.Protection for just cause evictions was extended to units built prior to December 31, 1995.Landlords or individuals assisting a landlord who endeavors to recover or recover possession of a rental unit without just cause may face a civil penalty of three times damages and attorney’s fees, including a trebling of damages for a mental and emotional injury if the landlord acted in knowing violation or reckless disregard of the rent ordinance.Anyone who engages in one or more of sixteen enumerated actions or omissions against a tenant in bad faith may be subject to a civil penalty of three times damages and attorney’s fees, including a trebling of damages for a mental and emotional injury if the wrongdoer acted in knowing violation or reckless disregard of the rent ordinance."

However, when you change the equation to the PM owns the GC company then things get dicy really quickly and it becomes clear that the PM is violating the core ethos of investing . . . align interests to make investing most efficient.This isn't unusual to see in the industry, but it is one of the things that should tip people off to steer clear of a company that doesn't disclose conflicts of interest working against their clients when they are readily evident to anyone working there.

But if it because of violations, unhappy neighbors, etc., be careful.  

If your town does AND your lease has "must follow local ordinances" clause, they are in violation of their lease. 

Failing to pay rent is one reason, but also failing to communicate or allow access could be lease violations.

Our litmus test is "highest and best" use...as a licensee we have to disclose highest and best use, but you have to remember that the best outcome does not always mean the highest sale price.Eventually you'll see the Attorney Generals involved with wholesaling...then things get ugly...not to mention they can easily surf BP and retroactively litigate any individuals they believe to be in violation of consumer protections...should be fun times. 

You also want to make sure you don't violate any due-on-sale clauses.