I take it the apology for any offense from the realtor wasn’t enough?

I hope the truth is not offensive.

At least you won’t have to waste any time or money doing background, criminal or credit checks on these people.

My company has been using a nationwide report for criminal and credit reports, but just discovered that a tenant that we let into a property has a serial history of evictions.

Rent is $800 so I'm assuming that also gets added to their debt ratio.People have criminal records such as possession of drugs but in some case they are dismissed or dropped.

No offense to anyone that's replied, but you should really ask this in the STR forum where people are more familiar with STR's in particular, because much of the information so far is not accurate.The good news is your estimates (275 ADR and especially 60% occupancy rate) are way low in the current market. 

One person on the lease has a previous offense for a shooting at another location in town, and I suspect others not on the lease may behave similarly.

It is easy for written words to become offensive when there's no other context such as facial expressions or tone of voice that might make it obvious someone was joking.

I would think most Americans would find this offensive on its face (maybe I am wrong about that). 

They are: verifiable income of $5,550 per month, good reference for previous housing history, pass credit check over 650, no outstanding past due obligations, no recent (10 years) bankruptcies, a clean criminal record, and no previous evictions.