The anticipated appreciation is the main driver in a rental-purchase-hold there. 

I would imagine a CO may be required if there is bank financing (and it is not a renovation loan that anticipates an initial vacancy).  

I'm writing a notice of the increase.Should I just create a notice without citing the reason, or list the reason as something like "anticipated wear & tear, etc.?

The investors who invest in San Diego SFR either are finding them below retail or anticipating rent or property appreciation (or most likely a combination of both). 

We will also provide an Energy Compliance Certificate (Res Check), structural calculations that support lateral bracing design, structural design criteria form and special inspections forms (for designelements within our scope of work) required by the city, underpinning drawings and design for adjacent buildings, and structural engineer’s calculations for snowdrift loads that will be anticipated on the adjacent 2 story houses.Handling of Permitting:The architect shall be responsible for the handling of zoning and building permit application submissions.

Depreciation elections are based on a whole list of items such as projected future passive income, current level of other earnings, anticipated exit date (if you've shared that), etc.Her reasoning of "more in professional fees" makes no sense. 

I'm anticipating them not having the house clean by the end of the lease and I don't want or trust them back in the house. 

So a phase out over three years is what I'm anticipating followed by a refinance. 

If you anticipate a longer hold than 4-6 months or so you should adjust the percentage down to 60-65%.

People who purchased should anticipated that there will be some one who will bail out.