If you're talking minor cosmetics then likely it's not a big deal and maybe you will see some increase in monthly rent or at the very least, you will be able to attract a higher quality tenant.

Different retail tenants would find one or the other attractive with their business models.Look around in that area and see if any new projects are slated and is it starting to change positively.

@Denise CardwellTry applying the deposit to lost rent for the lack of 30 days notice first then damages.Also, the detail isn't in your post, but just in case, never send out a pre-signed lease. even when using doc-u-sign (or the like) you can specify who signs first and can designate your self last.

@Micah Copeland Absolutely would go for a higher cap rate in a more difficult area.  1/1 and 2/1 are also likely to attract a shorter term tenant than larger units so keep turnover in mind.  

(LLC's were popular at one point but have been proven to be less attractive and "out of fashion" so to speak. 

We have all of the attractions for one and the snow birds that come down.

becomes your market is really attractive.  

What areas do you think are growing or have a particular feature attracting residents (particularly young married couples with no children)?

Would this attract a lender?

This will lead you to secondary and tertiary markets to find deals, which lead to additional operational challenges if you don't have an appropriate asset management strategy designed for smaller markets.