You would simply include a line in their new lease at renewal that tenants are not permitted to leave any personal items outside on the property with the exception of ..............Make sure you have all tenants on M2M and as issues arise you add them to the lease.

Don't pay a dime on drawing up plans until you are almost ready to apply for your building permit.

Other than that we do not permit it, dangerous territory. 

I knew of all of them in advance except when we got the house there was an extra occupant that the former owner did not permit to move in.

It boils down to a tenant who files suit and says you can't assess the penalty stated in your contract because the law only permits the recovery of actual damages.

the number of people permitted in that size duplex, that you screen for credit score of xxx or over, verifiable income source, and you verify housing references, and if that works for them you'd like to set an appointment up for showing your showing apartment on >>> date betweeen >>>and >>>.Meet them, show them the  apartment have application ready for them to fill out with ID you can verify.Why anyone would expect someone to do an applicaion with fee's prior to seeing the unit or verifying in advance that their ID matches to whom is applying is rather ODD.I've had people apply that couldn't come in person,, moving from out of state.. and I required copy of photo ID, application fee's via overnight mail.. and its worked but average is phone info, meet, show, apply, process application.Have your lease and documents ready, per your state law requirements. 

When it comes time to pull a permit, only show the required drawings to the city.

I'm assuming they didn't get the proper permits to do this,therefore; I'm a bit leery into pursing this as I don't want any complication arising from renting out the first floor as an apartment and maybe having a neighbor or whoever turn me in.

You can’t be both.I had a squatter in a house in PDX that I had a demo permit on.. they moved once we started tearing the walls down.. that worked. 

I am looking for a legit build from a licensed GC that would be fully permitted.