No extra unit will ever berented in it.

Since he had to replace the lock, I am willing to reimburse half of the cost.

It needs to be permitted to be qualified as an extra bed room.

I also figured that when he parents do pass down the road, we could refinance through a bank and pay off the sister her half of the home, while still keeping the house and the rental income.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

In a nice suburban neighborhood a large bathroom with a standalone tub can add a lot of value, but the addition of a second bathroom is also important.Do you have an option of making a slightly smaller master bathroom and having a half bath or smaller bathroom with shower stall in the other bedroom? 

If there were an earthquake, the house would snap in half, and appears to slowly be doing so of its own accord.

I live in a community where half the people never lock their doors.

You would still need to recognize your half of the gain on the sale.

I'm not saying all PM's do this, but some do...What motivates you as a PM to go the extra mile for a property they are managing when they get a percent every month?