Being vacation rental owners enables my wife and I to combine our love of taking distressed properties and making them better, design (you've got to furnish and decorate the place to create an inviting "guest experience") and hospitality.

I just bought a two unit building in the u street corrider and debating whether to have long term tenants or furnish it and rent it out for short term use. 

For example, you could make your customers happier (and get more customers) by cutting your rents in half, furnishing your units at no extra charge, throwing in free 70" LCD TVs in your units, etc. -- if it's all about customers, why don't you do that?

You will need to furnish these places, have them cleaned daily or have some sort of agreement with the tenant as to cleaning schedule for the unit, maybe they are responsible and you just have to clean up when they leave.  

I prefer longer term tenants that renew and are pretty much on autopilot--as for rent and any other issues.In retrospect I figured it out: the young couple never really wanted to be in my place, especially when there was a nicer room, fully furnished home and free rent (and even a full frig) at the parent's place! 

Make sure you have realistic estimates for repairs, renovations, CAPEX, replacing furnishings, etc, etc.  

I furnished a unit with glass top stove new hood, fridge and washer and dryer for 200$. everything still works today.

Have backup plan like making  a furnished short term rental if the home is nicely finished (for a lot more $)

Here we rent furnished rooms on a month-by-month basis, requiring a security deposit of one month's rent.

@Duncan Taylor You are correct in that the credit reporting agencies will not go to the courthouse to verify things, but just to the furnisher of information.I know, I know, I'll be accused of not knowing what I"m writing about.