Some neighborhood have seen issues where STRs are concentrated and not well-managed, while others have a smoother coexistence when clear rules and active enforcement are in place.The challenge seems to be figuring out how to protect residential quality of life while also allowing responsible operators to continue hosting.

Let’s say hypothetically  they were willing to sign a lien / deed of trust / mortgage in my favor to protect my position.Also, let’s say that the person that was selling and did the deed of trust to secure assumption ended up having a judgment at a later date.. could I foreclose on the deed of trust / mortgage to clear title?

Hi Stephen, It is getting a bit more complicated these days - the Housing Stability and Tenant Protection Act of 2019 removed many incentives for buy-outs, but sometimes being creative with the solution is worth checking out in addition to buyouts.

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

The 2nd has to be the winning bidder in order to protect the 2nd's interest or if there is a third, the third has to be the successful bidder for the 2nd to collect on it's loan.Your suggested sequence is true for instance, in Sheriff's sales in Arizona, but is not true in Deed of Trust sales in Arizona.

And it’s one of the easiest ways to protect your budget and avoid the stress of emergency call-outs from tenants or building owners. 

It’s a strategy that balances growth potential with protection, especially in an unpredictable market.

He could be laying on a beach in Thailand while I'm burdened with his possessions, protected by law.

I’d love to hear how other landlords handle this scenario to stay fair but also protect their property.Thanks in advance!

Clear communication and education are essential so clients recognize that accurate documentation protects both them and the tax professional.