I don't like the idea of a shade over the transom. it's a beautiful window. what about a type of glass inlay, stained glass or a leaded glass? they make it to fit those dimensions and you install it w/a special caulk to hold it in place. I did one w/our bathroom window. yours could look something like this you could have any design you want, just showing an example. I think it would look way better than covering it. if you want the name of someone, let me know, I have a girl on Etsy who makes custom stained glass/beveled glass. i've also seen these faux iron covers for transoms if you really don't like the transom, another option would be to have it removed and covered w/drywall. I like the idea of blinds. roman blinds, woven woods, silhouettes shades, etc. these are cellulars and come in a ton of colors/sizes (blinds.com) decide which look you like, and then go from there. beautiful room w/all of the light. I would do a nice potted plant in the corner of the two windows you could also do the plant, woven wood blinds, and some white drapes like so: I wouldn't bother w/shades on the door unless someone in the house behind you can see right in.

This isn't about your windows, but I wish your carpet had been large enough to go much further than just the sectional, far enough to include the window area. You could then also have a side table with a lamp, which gives a much warmer glow than those horrible overhead lights. You have enough room for curtains which will soften your look. Painting the wooden window surround is a great idea. I would choose cream side panels in a linen-type fabric.

Hunter Douglas makes a couple different shade product lines that come in co-ordinating fabrics/colors in both a horizontal and vertical version. These vertical options are not going to be the traditional PVC clanky, vertical blinds most are used to. You can get soft shades like Duette® Honeycombs, Skyline® Gliding Panels, or Luminette® Privacy Sheers. All these vertical products come in a horizontal version as well. Check out more at Hunter Douglas.

Hey There: We suggest that you go with blinds or shades for each window individually. A window treatment must be functional at first and looking at your pictures, the new tenant needs privacy and light management. I assume that the bottom window blinds will never be used in the first place but they will allow for light coming in and for privacy. Check us out at www.fenstermann.com or give us a call at 619.665.9446