@Katy Logue I loved US Home Inspect, used them twice.They can bundle add-ons if you want (mold, radon, termite, etc.). 

I have to add one quart after every 500-800 miles, depending on the driving conditions. 

A cat or a chihuaha is OK.....A Rotweiller or Pit Bull or Snake is NOT OK.Always ask how many people will potentially live at the unit....You don't want the mother, and grandma, and 4 kids living in the 3 bedroom 1 bath unit.....whatever number they say...always mentally add one more person to that.Regarding Deposits and Application Fees.........If (before they even fill out the application for the background check) they say I don't want to pay $45.00 for a deposit fee if I'm not going to get approved .....that's a red flag.     

Offering them as an add on for say $25-50/ month.

I've got great applicants for both units, but they both want the garage as an add-on cost to their lease.I'd love to get the highest price possible, obviously.  

I especially like the idea of posting a test add on Craigslist to check the kind of responses received. 

At the end of the day you've learned some things like 1)small houses are generally tougher sales, 2) spending a little money to fix weird layouts is worth it, and 3)always maintain good quality (very important) and add one or two items that grab your buyers. 

I would probably add on $25 a month and try to collect additional deposit?

You've already been given great advice here, but I will add one thing: as a person who loves dogs, and allows them in certain units, I think you made a mistake putting carpets in a unit that you will allow dogs.

Would address the main issue we believe its not renting.Option 3) Add on to the living room side of the house to create larger living area.