Do check ins every 6 months-check the furnace filter and batteries in the smoke detectors/CO detectors to make sure they are working. 

We stopped by one of our houses the other day to check smoke detectors and asked if anything was giving them issues.

By changing any of those, you then are required to update the code for the room, which would most likely add to your list the requirement to add a smoke detector, which may not already be present in the room if it is not a new home.Now, that is the RIGHT way to do the conversion. 

To my understanding too, you can rent your property out while you wait for the inspection and results, and if you miss some items on the inspection they're pretty easy to work with to get it remediated (In my inspection I was missing a smoke detector in the basement and they let me send photos when it was installed).

Regarding skip tracing, Tracers is a good resource as TLO has been declining more folks the past year When I had my HML shop we had an Accurint product that was called fraud detector for loan applications.. it was amazing  what is out there. 

To add the unit you will most likely need to achieve proper fire rating between shared walls/floors/ceilings and have interconnected smoke detectors.

They also have the smoke detector nailed down better....

He had smoke detectors in all rental houses.

The window must have a net clear openable area of 5.7 square feet (5.0 square feet if ground floor), a minimum openable height of 24 inches, a minimum openable width of 20 inches, and the bottom of the opening must be within 44 inches of the floor.Size: The room must be at least 70 square feet, and no less than 7 feet in any horizontal dimension.Lighting & Ventilation: A natural light source (window) of not less than 8% of the floor area and natural ventilation (openable window/door) of at least 4% of the floor area are required.Heating: The bedroom must have heating capable of maintaining a minimum room temperature of 68°F.Smoke Detector: A smoke detector is required in each sleeping room.While a closet is expected in most bedrooms, the International Residential Code does not actually require a bedroom to have a closet.

If the tenants are staying usually the only initial repairs/renovations we do while they’re still in the unit is to upgrade the smokes/CO detectors to hard wired and anything else that turned up as a life-safety issue in the inspection.