I showed the condo to a few people who pass my pre-screening questionnaire. 1) A couple + a dog who move from the next town want the condo starting on July 1.

My policy for rental screening is "no smokers allowed", however I understand that these tenants pay on time and are nice, quiet people.Because I suppose the damage is already done, should I just let them stay and go through the necessary rehab when they vacate eventually?

I have had several people lined up for viewings this entire week (I took advice from others the last time I listed my other apartment and really screened people prior to inviting them to see it, which limited the amount of overall people...thanks!) 

Management is key here to screen the best tenants and manage the tenant.  

Profits from short-term flips will be taxed similar to ordinary income, so you might be giving a good size chunk of the profits to Uncle Sam each year.

If you install, I wouldn't give access to tenants to monitor, We had outdoor cameras at a big complex I managed, people knew how to skirt them and was only the stupid ones that were actually occasionally caught, we had one in the pool area and that we used alot to monitor the swim area where it made sense.But they get wise, they rip the cameras out, or bust them up.I couldn't really see a reason for your size property,, I actually think it would make new tenants wonder why you would need them, as if the area was a WATCH ZONE..

If this was my project and you told me you weren't "using your insurance", and balked at filling out a w9 on what appears to be a job of significant size, I'd probably bail and try to get my deposit back as well.

I did some things right with that first rental (scheduling an open house instead of individual appointments, for example, and screening applicants) but there's definitely room for improvement.

When it comes to screening prospective tenants for income, do folks rely on a service for this or by calling on the phone?

If you want to be in the rental market for students, it is ok, but the competition will be higher because the size.