1) Only have the rules if you are prepared to enforce them (i.e. boot him out, call the cops, etc). Envision yourself doing it, and decide now if you actually could. If you could – go for it.
2) Don’t let your expectations get out of control. Put another way – don’t take his failure as a failure on your part.
3) Don’t believe that helping him beyond 2 months (if he doesn’t shape up) is actually helping.