To do this, they remove the moisture from the freezer compartment and drain it down a tube.

We used a moisture barrier under the cork. 

Add in padding, moisture barrier, trim, etc. $2/sqft isnt so bad. 500 more than replacing with carpet but will last much longer.

They tend to be older, and I'd be concerned about moisture and termites due to the exposed wood. 

If it's set up well, regarding venting, avoiding moisture, etc, you should be ok on maintenance and it will more than pay for itself over its lifetime.

(years of clogged gutters lead to foundation problems, rot, moisture intrusion and termites)  Is the yard graded away from the house?

For a bathroom, tile for sure because it's not a ton of space and you want a better reaction to moisture.

And gently remind this lender that there a lots of other lenders out there, and you'd hate to have to go somewhere else in order to get a new appraisal done, just because an appraiser made a mistake.  

For some, you have to be ready to gently teach them, and for others, they simply won't open their minds and you will have to use someone else.  

Durable, withstands moisture, inexpensive, quick and easy to install, flexibility to change out as needed, and the tenants like it.