However, this summer I noticed the water bill increased by 50%. 

@Bruce Bloom Kinda hard to cash flow on preconstruction properties unless you sell your interest (to capitalize on an increase in price) or prefer to have your capital tied long-term (hoping that the developer finishes the project). 

- Annual Rent increase\decrease for the market. 

Major renovations are planned: new roof, new HVAC, tearing down walls to increase HLA, licensed contractors on the premises, and some earthwork around the house to prevent rainwater drainage going through the house foundation.Thank you in advance!

So if your rent is less than a mortgage payment + monthly property taxes + homeowner's insurance and PMI (if applicable), you might actually be increasing your purchasing power by renting!

As a real estate investor how can I increase my chances of having my contract chosen over others?

You always make most if you do the development and even creating the lot splits will increase value. 

If there's a positive side, a housing crash decreases homeownership, pushing people to turn to renting - increasing the supply of potential tenants.

All the previous home owners that were displaced through foreclosure became renters, thereby increasing rental demand.

I have told the tenants that there will be a rent increase if their sister-in-law, but I am unsure of how much extra should be charged.