The one problem we have had is that the tenant took off with our monitoring equipment when he moved. 

One neighborhood charges me $350/year for a "rental permit", with the money from this fund going to a part time "covenant enforcement" person, whose job it is to monitor rentals.

I would screen well and guard against overuse of the water by having a clear clause in the rental agreement about water use and I would monitor it.

You prefaced the question with info about how they had some issues that seem to be re-occurring, are you asking the question about raising the rent inclusive of that info or independent of it?

I think you need to chill on the state law monitoring LOL. 

@Nick Brubaker, Local Market Monitor does have some stats on the 300+ MSAs in the USA.

I have been monitoring a property which has been an REO listing for over 140+ days.

As part of my demographics research, I closely monitor the movement of where the Asian money is flowing in metro Atlanta.

Disclosure of sales in the lease is a plus as you can monitor trends over time and likelihood to renew the options and plan accordingly.There are some value plays with a Walgreens where 5 years left on primary term for say a 7 to 8 cap.

You should certainly see more than 2 unless you have your monitor resolution set low.