Advice - House Hacking with Friends. Treat as tenants?

[Braxton Palmer]

Hey BP members. Would appreciate some insight here. I have the ability to buy a 2-3 bedroom home where I live in Phoenix AZ. I have a few friends that would want to be my roommates and pay a fair, market rental rate for the home I buy split up between us. I am wondering if I should treat them as I would any other tenant such as asking for Security Deposits, Signing a formal lease agreement w/ terms, verifying their incomes (to make sure I can get paid and friendship doesn't go sour) and holding up the lease agreement? Anyone else have experiences house hacking with people you know? How did you handle that? Much appreciated!