A well run business has reserves and performs risk management. 

Either way, they are putting time and resources into renting your property and, like you, deserve compensation for work performed.

Does recoverable deprecation belong to me or the company that perform the work? 

Depending on where you are in your contract, you may have a valid contingency to exercise to terminate the agreement, or you may not; if not, they could sue you for specific performance.  

I've been working with the model for several years now... the first round didn't go very well because the provider of them more or less stopped performing.

Lease Options look beautiful as long as everybody does what they are supposed to do.I haven't heard anyone address the possibility that the seller doesn't make the mortgage payment and the property goes into foreclosure.

This will likely lead to some marginal stores shuttering for good, but high performers will stay open.In my opinion this is being magnified by COVID19, but that is not the root cause. 

But the beauty of this is, unlike the stock market or similar things that could go down to zero, owning your short-term rentals allows you to build equity which can be tapped in bad times.

Can't go wrong with a place that beautiful!

Those that have to sell are left with the few buyers that are left who expect significant discounts.For non performing notes, I think we'll see the main deals in the next few months to a year come from mortgage note funds that buy performing notes or MBS and use leverage to amplify returns.