Mainly fire barriers, and extra insulation in between the floors. you could go with permits for the work that is being done if you want to avoid any concerns, but as far as the city will be concerned your home is just a single family that has a Mother-in-Law suite, and you are renting the spaces separately.

Or...should you look at it as it's only an extra $100 so just have it done! 

I like to make the extra money myself. 

An average income family of four banked over $11,000 in extra stimulus money and it is burning a hole in their pocket.

So if you lost 3 months of rent well that’s and extra $$$ money on top.

Would you buy a couple more rentals in cash and put 20% down on another and let the extra cash flow pay it off and then maybe get another in a few years?

I just want them out and I figured this was a sure thing since they were clearly breach given the extra adult.

On the plus side, they do numerous common repairs, but you must read the contract to be sure it is paid for and you can add "extras".   

My closing costs will be roughly $2500 PLUS they are requiring 25% down payment.I have the liquidity to put in the extra 5% and $2500 closing costs, BUT I’m wondering if it’s even worth going through this.

Check to see if they are charging guests extra fees on top of the percentage they charge you.