This is a very controversial topic to say the least and I'm sure there will have to be clear instructions, but common sense should direct you too. Here is another post that I feel nails this down better than I've read so far, but here is my last 2 cents and I leave it in your hands.
I agree the amount of time that is involved in turning around tenants every 7 days is material involvement to say the least, you have become a hotel structured business and working the front desk 24/7, even with using an online market advertising site to find tenants. Airbnb and the likes, expressly state they are not property management in their TOS! Likewise, states charge hotel tax rates too. Can’t split hairs on this one! My state says anything less than 30 days is Short Term aka Transient housing and taxed hotel rates vs ordinary rental rates accordingly. This using the IRS rule that just providing substantial services identified as meals, housekeeping etc. is just being used as a loop hole in effect to avoid the Schedule C pit falls in the rental model they choose to be involved in for the big bucks!
BTW, Passive vs non Passive rules and what qualifies is basically are you a “RE professional ” as in running a property management company etc vs having 1 to 3 rental properties! You have 25 units, you might be considered a professional unless you hired a property management co.
