Renting a garden unit, for instance, could generate $1,200/month but must comply with city codes to avoid fines.4.

For every angry client we have many more that are doing just fine!

@John Slater - So you knowingly associate with James Piccolo, whom the Arizona Corporation Commission fined $6 million dollars in restitution and fines for defrauding 105 investors with unregistered deed of trust investments?

The fines are huge. 

Yes has long as you are worthless you’ll be fine.

If they do, then you can likely find another tenant for that amount fairly easily, as I would assume the entire town's taxes are up- so if someone really wanted to be in town, that price is the new normal.If your taxes increased that substantially in a C neighborhood, your tenants would way more likely give push back for that type of increase- even though you're not being greedy, you're just imposing the same raise you were given.Often the buyer who had the "well, the numbers are better" mentality is only looking at year 1. 

The rent will be increasing by $100 and I'm just wondering if it's fine to request a check for the additional $100 security deposit or if I need to withdraw and return the current security deposit and request a check for the new amount? 

If they smoke, you'll get fined.

It might be more a matter of fine-tuning your listing than just a shift in the overall market.

If credit scores are fine, and you are just new to the work sector, then I would suggest doing a conventional loan with a strong income "non-occupying coborrower".