@William Smith  Doesn't someone still own and enforce the "We Buy Houses" trademark? 

For unrecorded code violations you have to make a request from the county/city code enforcement dept.

Then if there are no hammers coming down from the town code enforcement officer, the studio apartments would potentially net $300/each/month after expenses (those include Heat, Electric, HW).So the potential positive net cash flow is anywhere from $300/mo - $1500/mo. 

How in the world could I enforce something like this?

I am still heavily involved in building/yard maintenance and turnover work,  but I leave all the stuff with legal risk (advertising, showing, leasing, enforcement, rent collection, deposits, etc)  to the PM.  

The "Jail Time" comment really helped enforce how serious this is. 

This classification seems to be in a bit of a gray area as I am having trouble finding consistent guidance as well as an idea of what is typically enforced both on a federal and local level.

Of course you have heard the phrase "ignorance of the law is no excuse" You can certainly put it in your lease but you cannot enforce it. 

You can personally try to contact code enforcement and plead your case that your crooked property manager screwed you and that you are going to get compliant. 

I've had legislators tell me no to something that I've wanted to do...and after a little investigation, I've found that they own property near mine and they personally don't want it there and use their office to try and intimidate me, and hope I go away.