Does the tenant pay for the utilities as of now and you are simply upgrading the system? 

Make sure you ask about employment on this form, as this information can help you determine which tenants may be able to afford a rent increase and which tenants may not.

They CAN be if you are simply leasing to those businesses.

Looks like many of their JV projects simply got foreclosed on and their investors got hurt pretty badly.

Lastly, when they did your appraisals, I assume they determined the market rent via a 1007?

Irs determination “You're considered to use a dwelling unit as a residence if you use it for personal purposes during the tax year for a number of days that's more than the greater of: 14 days, or. 10% of the total days you rent it to others at a fair rental price.”

I would recommend them to get you set up for seeing all future bookings, the listing info and data, etc. and have them deal with it or simply ask them to switch their STR software to another platform specifically for those units under management...

State/local are determined by your state of residence, not the state the property securing a loan you hold, or property you own is located in.  

However in the future because  of how these things tend to go, I would not have called insurance or a remediation company, I would have just fixed it immediately before it got too bad then warned the tenant not to do it again (and to be fair to them it’s odd that simply hanging a picture would cause a major plumbing leak, the likelihood of that happening is so low) and moved on.

On top of that, demand isn't really the problem, it's simply new supply having to get absorbed.