I got rid of an old desk that was missing two drawers, and furniture that even Goodwill would reject.  

It's just a good will effort to attract more short sale business from them.The arms length issue is also a valid one, although if some one wanted to, I think they could do their own listing if they did not own the property.Bill

The downside is that you are building goodwill with the short term rental "business" for that property.

Sounds like you did your best to remedy the situation as quickly as possible which reflects well on you.As a sign of good will, it may not be a bad idea to simply offer them $250 (half of one nights rent) for their inconvenience.It means WAY more to me as a guest that the homeowner cares and we all know things can and will happen.

Any input from experts appreciatedWe are looking at buying few townhomes as rental properties, they will be brand new construction after we agree to terms and put goodwill deposit.

And a commander will want to know if one of their servicemembers is trying to take advantage of the good will of the civilian population for their own personal gain.  

We too had a hole where the dishwasher was and filled it with a used one from Goodwill.

After COE, just donate it all to Good Will.

In the long run this will benefit you by bringing you more business and more goodwill.

Some smaller towns the owners keep it open as a good will and community thing.