They *can* go outside of the standard 1 mile radius, but they simply have to have a good justification.

As no onsite inspections were being done, there was no justification for the higher cost of the permit.It would not surprise me (not a lawyer) that in combination with the warrant-less search issue if there were further challenges to unit inspections / rental permits so that inspections become limited to exterior of properties or at most the publicly accessible spaces to get a rental permit.Oren

In one property I got fined because the carbon monoxide detector was 8 inches too far from bedroom #2, I've been fined because the location of the fire extinguisher under the kitchen sink wasn't marked to say where it was.There is no way to get out of these fines, they do allow you to request a reduction in the fine after mitigation of the issue, and a reasonable justification as to why you had the violation.    

Still though, you should have your justifications documented either way.

Knowing the justification behind it wouldn't change anything.

Is inflation/CPI increases valid justification to increase the rent greater than 3%?

Our justification for pulling the trigger on such a low STR CoC return (10%) was because it was our first STR property and it's 3 miles from our primary home. 

Not looking to have one installed just if there was one would you shy away from it do to liability. 

The list prices of these properties appear to be quite low, but I can't see any justification for this under the listing details.

Jeez I personally wouldn’t recommend reporting someone with no real justification other than suspicion.