I've seen properties on a lake or near a park or popular trail that will consistently get higher rent. 

@Jake Faris Contributions for development and remodeling will be capitalized, increasing the property’s basis and reducing taxable gains upon sale, These costs are not immediately deductible.

Eventually, Class A property values increased to the point that even increasing rents didn't allow them to cashflow upon purchase.So, the flood of new investors switched to buying Class B properties.

In their minds nothing could ever go wrong because if rents didn't increase dramatically or costs increased dramatically they could just refi till you die (exit, in their case);2.

Buyer preferences are shifting towards energy-efficient homes, smart home features, and open-concept designs, so incorporating these elements can increase appeal.

The investor must consider whether the potential property value increase or other benefits outweigh this loss. 

How much extra security deposit and rent increase is appropriate?

I also am aware that we are increasing our net worth through real estate, but we are paying so much in taxes and cannot claim the renovations or improvements on the properties we own due to our income.   

However, I’m actively managing my investment, taking on risk, and improving the property, which has significantly increased its value.

This can potentially lead to problems and the safety of the others in the home.I am planning on speaking with him about the lease violations and switching him from yearly to monthly with an increase in rent, due to the increased labor of the cat and the checks in of the cleanliness of the room.