The prospective tenants sound like such nice people. Then again, they could be the Tenants From Hell. You really just don’t know.
There are so many many pitfalls for beginning landlords I don’t know where to start. By posting here you have a good beginning. You might have an experienced landlord-friend you could consult, or even have them screen this family.
One basic piece of advice I’d give is to not make friends with these people. Keep it on a strictly business basis, proper paperwork, no favors exchanged, no tenant painting allowed, etc. It simply rarely works to be friends with your tenants.
And the fact that you like pets and therefore are open to their’s suggests you are thinking with your heart, not your head. Talk to experienced landlords about the pet thing–there are many pros and cons and you need all sides to decide.
