But seriously, I think the thing that makes this stand out is his long and current  criminal record.

The original tenate I have no complaints about, but should I even consider his friend as he told me he is in between jobs.

Then, maybe we could complaint about the seller's agent, but we will loose the deal. 

Probably nobody will complaint.

I would like to file a formal complaint.

Google the website and you will see the 100's of complaints including their title company they own and use which is in Atlanta Georgia.  

You simply change your behavior by being less personal, less eager-to-please (but still friendly), and setting boundaries (not always immediately answering to their calls/requests/complaints).

For those that manage their own properties with VRBO and housekeeping, how do you deal with the minor complaints from a distance (3-4 hours away)?

One day, either the tenant or your "friend" --- who most likely won't get any holiday cards from you at this point --- gets pissed at you for something that goes wrong and files a complaint with the Commission. 

That way it's easy to follow up on complaints and problems just with a click on your phone instead of going to the property.