I live in a small town in eastern Arizona, about 7000 people, and we have a pretty serious shortage of rental properties.

People interested in this type arrangement probably don’t have access to $150,0003.

It works great for many people -- not me -- but it might be your best option considering your distance. 

My realtor told me that there's been happenings of neighbors turning in people who are doing STR's and getting investigated by authorities, resulting in fines & such.  

But keep in mind, the top of their list is going to be people that they’ve worked with in the past and probably closed deals with.

Actually have people contacting me before I advertise a unit available.

A mass shooting occurred tonight on the street next to the street where the property is located, leaving nine people shot and one dead.

I can see how an application fee per person can be a deterrent for applicants in my case whether for more upscale rentals people may see it as more normal.I am starting off as a non-refundable fee and measure the resistance, then adjust if needed.

Quote from @Theodore Sutton: Check out the site meetup.com and also the events page on BP for meetings up in your area to meet people like this and build relationships.

I manage my own portfolio and have worked as a PM for a very successful individual but have never considered managing other peoples properties.