First off, learn how to screen potential tenants. 

I plan on screening that person like they were a tenant, but how would you handle the lease? 

Most we have actually denied during our screenings because of credit score / other factors.

When you have $7,000 in an account, it's important to know where that money came from.If you don't already have software, I recommend checking out tenantcloud.com because it is free and pretty robust. it can handle tracking your income and expenses, application screening, marketing, maintenance tracking, owner reports, and more.Sorry for any typos, I'm using speech to text on my cell phone.

It's twofold, I think - first is the psychology of "I was here before you so this is my place" or what I like to call the substitute teacher syndrome; second is they were screened (or not) by someone else using different criteria from your business model.Kudos to you for doing this transaction right and using the estoppel! 

With all due respect, it sounds like your problem is with tenant screening.

I'll also state the qualifications again to help screen out non-qualified prospects. 

I screen based only on their actual pay checks.

We set a budget for the reno and furnishing of $5500 and we are already at $3400 and still need to buy furniture including a big screen TV.I want to ask others do you feel installing shower doors is worth the investment or can we install a curved shower bar with a higher end curtain for combined probably $150.

Quote from @Mary Jay: Screen her first!