I spoke with my real estate lawyer and he said to look out for complaints from tenants about noise and the inconvenience of having contractors coming and going.The tenants have a toddler and an 8-month old.The only pros I think would be to lock them in for at least a year and the finished basement would increase my house value.Cons would be that the money they give would be allocated to the finishing of the basement and I would need to set aside money to pay down my monthly operating expenses.Any feedback would be appreciated.

I too don't like the fan noise. 

@ Check the laws in your state regarding your rights to issue a three day notice to correct the noise nuisance they are creating or to quit the lease.

You can require ALL tenants to exercise responsible animal ownership, protect the property, minimize chance of harm to other people, and maintain acceptable noise levels that do not interfere with neighbors' enjoyment of their own property.A well-written animal clause will require the tenant to:Provide proof of current shots, if applicableProvide proof of flea control medication, if applicableDisclose the name and contact information of the veterinarian caring for the animal, if applicable (hamsters, for example, probably do not have veterinarians)Keep dogs in a crate or on a leash at all times when outside the dwellingUse a pooper-scooper, whether on the leased premises or another's propertyVary locations of dog urination, so as not to burn shrubs or lawnEmpty cat litter boxes daily into outside receptaclesControl  excessive barking that disturbs the neighborsAllow monthly inspections for pet damageImmediately clean any pet discharges and immediately report any damageAssist with Twice monthly HVAC filter changes for long-haired animalsKeep pet food supplies in pest-proof containersI think that if you approach the problem in this manner, you will be more comfortable complying with Fair Housing laws.

They don't make much noise, and they have to be cleaned up and managed on a daily bases.

With M2M, if a tenant has a crazy GF/BF move in, or their relatives come to visit and don't leave, or they start making a bunch of noise or whatever - all you have to do is give them a 30 day notice for any new rules, or to terminate the agreement.  

My only rule for the renters is "don't piss off my neighbors," which I've explained to them means, no noise outside after 10PM. 

They are a medical device, basically.I know it's a weird concept, but there you have it.However, if the animal misbehaves, you can kick the tenant out over it - they still have to follow the rules for cleaning up after pets, and if it causes damage, you can charge them for damage, if it barks incessantly, you can kick them out for noise, etc.But, you can't charge them any pet related fees, other than for actual damage after-the fact.  

The addendum will also state that you agree to update (landlord) if (sister) moves out permanently.I am strongly suggesting that you and (possibly landlord) sit down with (sister) and review the terms of the lease, especially things that might not be so obvious but she needs to be aware of (ie noise levels, basement access, smoking, etc.)They will not increase the rent with this addendum, but as with all lease renewals, it would be potentially subject to increase at next signing."

When you go over the lease, provide them a tenant instruction sheet with your welcome packet that explains:- how they can pay rent- how to make a repair request- watering restrictions- how to operate unit's HVAC, thermostat, care of garbage disposal, location of main water shut off, gas shut off, breaker box- numbers or links to turn on/transfer utility accounts- how your city enforces noise ordinances and how this may effect those who violate it (BTW, your tenant  blasting his music so it can be heard at by other residents on the block  at 10 am is just as bad as if he is doing it at 4 in the morning). - anything else you feel tenant should knowOthers have given you some great suggestions for collecting rent automatically.