The property had good bones and a solid structure, making it a great candidate for renovations that could increase its value.

The property had good bones and a solid structure, making it a great candidate for renovations that could increase its value.

I'm confident in that! 

I have not increased their rent (although I should have).

If it were zer0 dollars out of pocket without increasing the loan amount, it seems like a no brainer, but increasing the loan has me skeptical.

There are going to be three levels of addressing this 1) things you can simply go there and do anytime (pick up pet waste and throw it away) 2) things you can do given proper notice (enter the unit and inspect, repair damage etc) and 3) things you can only do given proper process/procedure (notice to vacate, increase rent etc.)

I double "co-hosters" in most markets are getting 25-30%.If property management interests you I would suggest you become a licensed and insured PM company to increase your credibility. 

Is KNOWINGLY increasing a payoff to an amount ABOVE what was technically and verifiably owed illegal for the lender and or borrower to do?

This tends to occur when the appraiser is unfamiliar with the area, and the area has had a recent rapid increase in property value.  

Permits are now required for all STRs, with fees increasing as of June 2024.