I also don't do the "landlord special" where everything goes a single color (trim, walls, light switches, outlets, ceilings).  

Other potential requirements are size (10'X10' as one example), having a closet, having heating to the room, having proper electrical outlets in the room, etc.Look up your local municipality building codes to ensure you have it as a legal room with permits so it can be added to the assessed details/title.

Im about to househack a duplex where basement is shared and one outlet for washer and dryer.

Issues like peeling paint, broken windows, outlets/light switches uncovered would not pass inspection. 

@Brandon Montgomery If you ever figure this out, let me know. 

The job would be easier than a home inspection because they aren't testing all the outlets and appliances, walking the roof, crawling the attic, etc.

You also should give them instructions on how to leave the house to ensure they receive the maximum deposit back and avoid additional charges for damage....Mow GrassWeed Flower BedCleanout worksheet.....how to clean, what you expect, etc.

It is basically adding a wall with some electrical outlets so my guess is we need electrical permit?

Someone purposefully drawing power from your house meter outlets.

In the progress of weeding/ harvesting equity from duplexes which are good- but not great cash flowers.