Should we pass on a well qualified applicant?

[Jill Peterson]

We received an application for our ADU rental from an extremely well qualified applicant. After meeting this applicant we became concerned because they had so many ammenments they wanted to make to the lease (the lease was not signed nor do we have a deposit from them), insistance of blinds in the kitchen area for privacy, plus we got an overall uneasy feeling about this person. This rental property is above our personal garage and next to our home.

Are we crazy to pass on such a well qualified applicant because we get a bad vibe from them?  What do we tell them for why we are passing on them?