One day my roommate and I helped them move in a tv and in their apartment they had inflatable couches, the tv we were installing, beds, and a tanning bed, that's just about it. 

I cant edit my comment.The property is off market in Englewood - A very rough neighborhoodFrame SFH 4 Bed/ 1.5 Bath, Rear Parking Spot, Asking $47k, ARV $185k, and estimated rehab $80k.

@Lacey Bediz I owned bed and breakfasts for 25 years which are essentially similar to STRs.

Just be sure to do your best to compare apples-to-apples, not just with beds/baths/sq ft, but also quality of finishes.Then present this info to the tenant and ask them what they think a fair increase is.Strategy is to show them they can't find anything else at the rate they are paying.Of course, at least 25% of the time they will claim they can't afford any increase.

We added cheap square footage by filling in a breezeway which helped to turn an attached ADU from studio to 1-bed, and turn the Main Home from 2-bed, 1-bath into a 3-bed, 2-bath.

Are they 3 bed 1 bath or 3 bed 2 bath? 

Here's a more professional version of your message:---Hello,I already own two bed and breakfasts, which I have been managing for several years.

However, when I told the tenant that I will provide one hotel suite for 4 people (2 queen bed with kitchen and free breakfast), she has started demanding me to provide room and board for everyone including the dogs.

I personally do not own an investment property near downtown Danville but I believe the fair price range for a two bed 1 bath is between $400-$500.

If it is rated for a 3 bed, but it's not getting super regular use because of vacancy, then I don't know if I would be too worried about it.