I think the alliance is working with the opposition to come up with a compromise on the Airbnb regulations.

It's a great compromise that permits density while retaining existing character — it doesn't sideline residents and it typically delivers somewhat affordable housing.  

From my perspective, the law is a good compromise between allowing free market forces to do their job and yet prevent overreaching through deception. 

It's understandable that you want to show the property to prospective renters as soon as possible to minimize vacancy time, but it's also important to respect your tenant's right to privacy and quiet enjoyment of the property.One option is to try to negotiate a compromise with your tenant.

Let’s also assume that the seller is ok with not touching/accessing any of the principal in the trust (but would consider taking interest payments, etc. if they can from the trust; whatever can be done without compromising a potential 1031 exchange.)

It also compromises cash flow because the interest rate is higher.

Do not compromise your screening standards or you will regret it every time.

However, if it becomes an issue, I'll have a direct conversation with the owner and try to compromise in some way.

So because you know that is important to you, don't compromise. 

As a compromise, I might suggest the 12x24" tiles that don't look as cheap on the walls as the 12x12 or larger square tiles and spring for epoxy grout, because that stuff is unstainable.