I spent $37,000 on furniture and household good (high end condo), and received $8,000 when I sold the furnishing after 6 years.

Multiple sets of sheets, multiple sets of bath towels, at least (4) pillows per bed, kitchenware, accessories, rugs, artwork and outdoor furniture.

From experience as an owner and a student, I think most would want to bring their own furniture themselves with the exception of appliances like fridge/freezer and washer/drier. 

Trying to identify if better to list as Turnkey STR or empty it out (i have no use for the furniture and appliances). 

There are exceptions, but generally speaking, you will spend a lot of time to gain no equity and likely end up break even with a bunch of used furniture in an optimistic scenario in my honest opinion.

For example, a $1000 fine for using the elevator to move furniture would be completely unreasonable in a unit where prices are $150,000.

The property wasn't underwritten, the homeowner saw money signs instead of reality, the market and guest avatar weren't researched, and good chance the furniture and decor were 15-20+ years old.

Give them a day one which it is going to be done and tell them the floor needs to be clean and all the furniture removed from it-plus they can't walk on it for a set period of time until the floor is dry-probably a day or two.I'd also make sure you increase their rent because my guess is when it comes to replacing the floor AFTER they move out, you aren't going to recoup what you expect from them. 

Can we have tall furniture that functions as a closet if the room doesn't have a built in closet? 

@Arwin Nassiri for condo hotels ypu have to pay every time they replace furniture to suit the new style or image, not to mention wear and tear.