This is particularly common in two situations: pets and parking.With regard to animals, pet rent is usually charged based on the size and/or weight of the animal.

@Brady Stout I’m in a resort area in New Hampshire and we keep our decks clear of snow simply for the reason of snow load and the fear that eventually under enough weight they will either pull away from the house or collapse.

The loss in most of these funnels is rarely on the better lead sources (although there are some bad ones), the loss is usually on the client who buys leads and thinks they will come ready to sell in a phone call.

We are not real estate professionals (tax purposes)This move will generate a large loss for tax purposes - I understand as non Real estate professionals we can only deduct up to a certain amount of losses each year ~3k with carryforward. 

However, I'm thinking of bringing in another developer, and I'm happy to split profits and losses, we would undertake this deal as a joint venture since this project is very essential to me and the developer's experience is invaluable.

I have read many places where people mention the losses need to be generated in the same year as the sale in order to offset the sell, but in other cases they imply that prior year losses can offset both gains and recapture?

@William Yeh   Under non-recourse loans, the guarantor is not generally responsible for losses the lender incurs, unless they commit certain bad acts; such as fraud, waste, damage or destruction, misapplication, misrepresentation, bankruptcy, or environmental contamination. 

Sounds like either way you are looking at losses so get them out now with eviction or  get them to come in line, start paying rent on time, and follow the rules.No legal advice.  

I have one rental property with passive losses.

So, many of the issues that you discussed will actually put more weight on the cashout option.