So far the tenant passed the background check and we are scheduling time to sign the lease.During our recent conversation, the prospect asked me if it is OK if she installs alarm system on the property. 

So basically the inspection is probably to make sure the fire alarms and overall condition of exterior and interior of building are up to standard of living conditions it should be.As far as the illegal in-law apartment,, are you renting that out.. extra... 

The "in piles" comment... that is an alarm going off in my mind.

They will also tell you what you as the owner can do to lower your rate (smoke alarms, security system, etc). 

Is it up to fire code (may require hard wired smoke alarms, exit lighting, etc.)?

Tenant may want a security door or a camera or alarm system or better lights. 

The sad truth is that most of these tenants don't understand why rent increases are occurring at such an alarming rate.

The IRS now requires property owners to depreciate 9 separate units of property within their real property:ElevatorsSecurityHVAC UnitsEscalatorsGas Distributions SystemFire Alarm and SuppressionElectrical SystemStructure of the building (including windows, roof, concrete and walls)Plumbing SystemIs this a tax strategy you’ve utilized on past demolitions or renovations?

If something breaks that line in the picture, you can have it do whatever you want; alarm, phone call, text, warning lights etc.

Put up video cameras or add an alarm?