I would first look up the definition of “living” before getting to worried about it.

I doubt many inspectors will be willing to work the night shift necessary to catch someone sleeping in there. And, without plumbing, they’ll be hard-pressed to prove anything.

I think they care about someone renting it out and cooking/sleeping, etc.

Still – I’d ask a lawyer what, exactly, you can’t do just so he can get his story straight if anyone ever asks.