The wife is insisting on accepting it.  

I won't get into the details, but neither situation worked out well.If you insist on doing it anyway like we did, have the discussion NOW (not after they're already renting from you) what your plan is if/when rent is ever late (or not paid at all), the property is damaged (either as a result of your family member, their guest, their pet, etc), and all the other things that go along with managing tenants/rentals. 

It does nothing to help the seller...so I see no reason to insist on striking it if your partner is the buyer.

Next I insisted that they pay electronically so I could eliminate the variable of payments delayed in the mail and make sure there was no confusion as to how much of a late fee was due.

Renting to a friend of a friend is likely going to be a very bad idea.Roommate situations often end up in a disaster.If you insist on doing this, besides worrying about the security deposit,  include a very thorough screening on this person; credit check, criminal check, review of past rental history, income verification.And a WRITTEN lease outlining the specifics of what the two of you expect from each other is a must.Gail

You may not do anything negligent but your tenant or the tenant’s guest will insist that you did.

I insisted on getting an itemized list of the charges.

If one partner is getting a HML for 65%, that HML will insist on a deed of trust (or whatever is used in your state) against the property.

The City I deal with also insists on having the landlord contact information on file but after several years they still screw it up.I hold the mortgage for one of the Building Inspectors (in place b4 he got the job) so he is a wealth of knowledge.

And, they are moving down to a more affordable rent level.If a LL insists on trying to cover every little issue and charge more for depsoits, is always making new terms you're limiting your market and increasing the vacancy time and that costs you money.