Drafting an operating agreement and putting formality is really important was there are risks in partnerships.

I also did a number of things around getting better leases created, purchasing a property management solution, formalizing a business plan, etc.  

It sounded like the garage was a bonus not formally in the lease.

The home has a formal living room, 2 family rooms, and an office.

The home has a formal living room, 2 family rooms, and an office.FURNISHED:The residence comes complete with a master bedroom featuring a king-sized bed, two bedrooms each furnished with queen-sized beds, and a fourth room equipped with two twin-sized beds.

Well, it depends a lot on how much your tenants care about their Credit Score.Sadly most Collection Agencies I've worked with tried to "make a quick buck" meaning use scare tactics to make the tenant pay before formal litigation.

If you are new and do not have much exposure it’s a formality at this point you have minimal at risk.  

On the other hand, establishing separate LLCs for each of you, along with a formal agreement offers greater asset protection and flexibility.

Do mid term rentals listed through airbnb still need a separate, formal lease, similar to how a LTR would be set up.. or is the airbnb booking enough and provide enough safety to the landlord (e.g., tenant doesn't pay, destroys property, etc.)? 

I had lost trust with this landlord,  as she had told me i had to pay a $100.00 fine for a formal how complaint that was made saying i had my dog off leash.