This house offers convenient access to XXX University (10 mins), XXX Hospital (5 mins) and lots of shopping including Costco, Bed Bath & Beyond, Petsmart, Kroger & more just minutes away.

I think you'd be best off getting something that would wear better than the super cheap stuff.As a tenant, I just want outlets and switches that work, and preferably a lot of them in convenient places.  

It might take 5 minutes to setup, one time, but once done tenants consistently praise the system for saving them time and being convenient.  

There are benefits to keeping things separate although combining accounts is a greater convenience.  

This motivation is convenience close than financial or deterrence.

Also, shared leases are always a shorter-term as it is a situation of convenience and people's life changes and than so does that convenience. #2 is the "no-brainer" selection.

Very true about the convenience of renting to friends.

Phoenix has a 75% to 95% increase by 2030 .... so while 'flipping' isn't what i want to do ... i'd be selling it potentially in 20 yrs ... it'd be great to buy a Class B that's in a convenient 'good' place ... and then to have the city DOUBLE in size ... driving up the property value too

I think you just need to be realistic that it doesn't make sense financially, but you just want to do it.I choose to rent right now at this point in my life because I like the convenience of it.  

Id let them stay and offer a convenient lease for yourself.