Tenant volunteering to upgrade/maintain house for a reduced rent

[Foley Ma]

Hello BP,

I'm a 1st time landlord. I am in the process of renting out my current SFH. I will be moving to my new house in a few days about 45 minutes away. I have in a fairly tight knit neighborhood, and one of the previous homeowners want to move back to the neighborhood, but only for a few years as they are retiring. They thought they would retire earlier, so sold their house 4 years ago. Prior to that they lived there for 20+ years.

I never knew of them, as they sold their house before I moved in. 

Based on my research and talking to my realtor, I can get $2200/month for my house. It's a 4Bedroom, 3 bath. The two closest comp, one rents for $2300 and another $2100. Both are 200 square feet smaller and have 1 less bathroom, or 1 less bed and bath. Both are also 10-20 years newer (though, my house is in good condition).

The potential tenants contacted the realtor on my street asking for home rentals, and he knew I wanted to rent so got them in touch with me. I have yet to list my house anywhere.

The tenant renovated their kitchen, create a mud room and other things on the 1st floor. 

What they are proposing is $1700 to move in, they will maintain and upgrade the yard, change out electric stove for gas stove, replace a faucets, toilets, and some other upgrades to expand out the master bathroom. They want to see themselves as care takers, and not renters. They say they'll save me trouble as they take care of their house, they won't call me for random repairs.

I haven't ran a background/credit check or ask them to formally apply, still coming to terms. If it was someone off the streets telling me this I'd tell them heck no. But they've lived here for 20+ years, they are still on good terms with some of the neighbors. 

Lets say the market rent for my house is even $2100, or $2000. At that price point I think I would screen out a lot of people who would cause trouble that they'd would save me trouble from. 

So, good idea or bad idea? Any other questions I should ask for, or red flags? Even from the beginning they were keen on negotiating their price based on telling me how much trouble they'll save me from. I'm sure I can counter their price with something higher. Have you ever had someone negotiate this way? And what's it worth to have someone the neighbors know? 

Thanks!