When I confronted them, they defended their quote, stating that they go off the industry standard and a portion of the labor time is for "testing the system after repairs to ensure safety."

In my specific case, the tenants pay electricity & gas, but the previous owners were paying for water.

We deal with a lot of shared water and electric.

PLUMBING expansion tanks for hot water heaters, copper scabbed into galvanized pipe and proper venting HVAC - sealed duct work and properly sized for sf.

It’s a lower quality standard than most new construction homes.

Turn water off2.

Anyone else hear of passed legislation mandating the property managers in addition to property owners are now responsible financially for any repairs not done on properties, taxes not paid and rental certs not submitted/paid for, lead based paint fees/apps and required work, HVAC certs every year and proof utilities (water/sewer) as paid, and general compliance matters?   

I would use the standard realtor lease form in your area and then look up common extra conditions landlords are using now.

(A) For an accessory dwelling unit described in subparagraph (A) of paragraph (1) of subdivision (e), a local agency, special district, or water corporation shall not require the applicant to install a new or separate utility connection directly between the accessory dwelling unit and the utility or impose a related connection fee or capacity charge, unless the accessory dwelling unit was constructed with a new single-family dwelling. home."

(For the application or the actual lease. )We were used to doing a standard Texas Realtor Residential lease.