It's also vital that your boots on the ground person inspect progress on the project every 3 days or so. 

This behavior modification is the result of the virtual guarantee that if they do not pay the rent, they will be out on the street in less than 28 days.

It never ceases to amaze me how come so many go to the effort of getting a great income, and great credit score, but forget the most vital ingredient that Lenders might look at: their savings record!

Some things they consider acceptable....moving in grown children and their live in partners, pets without landlord permission,  modifications to unit without permission, bringing in curbside cast off furniture containing bed bugs etc.........Finding regular tenants that pay on time will be far less work and stress than S8.Additionally inspections can be a major pain.

The less time you have, the more relationships and partnerships will be vital to you. 

From my view, it sounds like vital information was provided to the landlord of the premises. 

Also what you are proposing is not a "full reno" but more like a basement finish with some modifications.

This week I am meeting with one of the top loan modification experts in the country (through a mutual acquaintance). 

All that being said, it is vital that you work with a securities attorney to make sure you CYA (cover your a$$) from every angle; as @Brian Burke stated, jail time is at stake.

As far as asking for damages, you would need to review your contract and any attorney modification letters.