I'm afraid I don't understand this logic.

Their own logic seems to be - the rent covers all utilities (they have assumed a certain cost for utility based on some logic that assumes the tenant not being at home majority of the time; they're then saying - if you're going to spend more time at home, we assume you're going to go over our utility estimate).

Also, it's a 1 bedroom and they have a target renter in mind. Maybe they aren't expecting (planning) to rent to elderly folks or disabled people; Maybe their target is a working professional.

Elderly and disabled people don’t ever live in one-bedrooms or ADUs? Also, where did you find all this information on their targeted renter — did I miss that in the article or did you make it up for your argument?