Due to item 1, adding an ADU can require years to start achieving any return (once the accumulated cash flow recovers the initial negative position).4) Adding an ADU is a slow process.

Just remember not to do a 12 month lease if you find someone this month or next!

What's the best way to navigate this situation regarding the application process as well as the lease administration?

My realtor at ReMax said they still charge non-refundable pet fees which is states on their leases. 

To answer your question, if the home is priced at market rent, we are seeing our rentals lease out in 25 days.

By making partial dispositions, you can also avoid subsequent recapture on these items when you go to sell.

Quote from @Andy Sabisch: Question . . .our leases have a NO SMOKING INSIDE clause. 

Hi Ricky,Being in operation for 10 years with mid seven figures of assets and NNN leases,it would be wise to speak with your tax advisor regarding if the tax set up should be an LLC, an S-Corp  or a C-Corp.It would also be wise to speak with an asset protection attorney to find out if this is something that might be beneficial to you in that area.

Was fortunate enough to lease for higher than expected rental rates.

Quote from @Caliana Johnstone: Realized leasing to a new tenant can take 5-10 hours easily.