They all have separate electric but they share water.

@Greg Scott make sure you separate rent from maintenance requests.

This WH is electric per the pictures.I'm going to be the contrarian and say move the heater, or box it in some way to separate it from the closet.

You need a separate filled out form per applicant for each year 

You may want to consider asking a Property Management Company for this information.The asset management fee is its own separate fee that is collected from the GP managing the property.

I know that is weighing on me, but I'm trying to keep that and real estate separate as best I can.

Do I need to prepare separate pet agreement during lease renewal if nothing changed?

The first option is better, especially if the basement is separated from the rest of the house. 

I would give them the opportunity to apply, passed my screening, pay a security deposit, and sign a written lease agreement.The security deposit from the daughter does not belong to the mother and should be treated separately, like you would for any other tenant that abandons a property.

It's ok to have some separate interests, I don't talk about sports with my husband - but he has his guy friends and endless sports talk radio/TV shows for that.