Hey there,
A friend of mine rented an investment property from me for over four years and it was a very positive experience. Your friend sounds reliable and honest. If you offer him the property say for $10-$20 per week under market value you will probably still be saving on agency fees and comission. Start out with the understanding that you will have to raise the rent slightly each year and in return for being a good tenant the rent will stay just below market value so he is saving also. Still do an inspection now and again and ask for bond. I think you worry too much! Good luck
Andy[chill]