There are front/rear entrances for all 3 tenants.

The upstairs has a separate entrance and is currently rented $125 below market rent.

The home includes a private entrance living quarters attached to the home (includes full kitchen, washer and dryer, wet bar, 2 walk in closets, etc.).

They other issues were 1. didn't have a seperate entrance.

Looking for advice on renting the whole house as is or finish off the basement as a studio type apartment with private entrance, approx. 710 sq’ ?

A studio would be worth more than a room rental if it's a separate entrance.

It’s walking distance w it’s own entrance to beach but it’s not right on the water exactly.I think I could fit 8-10.

(This is about taxes)You need a Zoning Permit for Visitor Accommodation:To rent your home for stays of 30 days or fewer.If the property is not your primary residence.Housing requirementsSmoke alarms must be installed:In each bedroom.In the hallway in the immediate vicinity of the bedrooms.On each floor of the home, including basements.Carbon monoxide alarms must be installed:Within 15 ft. of the entrance to every bedroom or within 15 ft. of a bed in sleeping areas if there isn’t an enclosed bedroom.Centrally on a wall or the ceiling, but not directly in front of a door to a bathroom or within 5 ft. of a cooking appliance.Under the installation requirements for smoke alarms if they are combination smoke and carbon monoxide alarms.You can’t post signs for lodging on your home.The home can’t be occupied by more than three people (including the owner and renters) who aren’t related by blood, marriage, life partnership, adoption, or foster-child status.You cannot change your house so that it no longer resembles a private residence.Information you must provide your rentersRenters are only allowed to have guests between the hours of 8 a.m. and midnight.You must tell renters the trash and recycling collection days and any trash disposal rules and regulations.

They are renting each room individually on a short term basis so there are constantly people cycling through this unit, all of which are given keys to the front entrance and garage door openers. 

Marbella Tower apartment building offers to the residents impact windows, covered parking space, a fitness center, heated pool, laundry facilities, intercom at the lobby entrance, and community clubhouse.