"Is there an option other than management agreement?"

Of course.

"Should S-Corp be marked as final,"

If they are going to unwind all of this for 2022, sure.

"reporting only the payroll; with income and expense of rentals reported on TP's Sch Es?"

No. You already have one property owned by the S Corp, so you honor what that entails.

You have to deal with Asset, Debt, insurance, tenant agreements, income, expense, depreciation, etc, accordingly, and straighten that out going forward.

Here is how it would more typical be advised:

You and I each have multiple suite business or resort buildings. We want to co-manage and perhaps, one or the other of us wants to be able to be gone now and then. We form an S corp to be our property manager firm. That S Corp employs us and a few other parties to run the properties we own personally and the S Corp pays us (and other owners we can get under management contract) some sort of Net Rent. We each then have income from net rent to help pay our own mortgages and ownership costs (as opposed to operating costs). And we have wage compensation for purposes of FICA, retirement, health, etc, as long as we also do some of the work. And there might hopefully be K-1 income as operational profit from operating the S corp well. And we have staff, so we no longer need to cover the midnight flood, the leaking roof, the irate phone calls, the deadbeat rent collection, and the evictions. This is very typical in my area, where we have Resort property and multiple unit buildings in ski/lake communities. It's a Rental Pool operation.