Can I do an incremental deposit?

[David S.]

This is just a theoretical that popped into my head, but for those markets where rents are relatively low, would it be reasonable to take on a tenant with the typical one month's security deposit, but in addition you add $50 or $100/month to the rent to build up the deposit till it hits two month's worth? This would still be fully refundable to the tenant and is a nice way to save up for their next place, be it another rental or a purchase while giving the LL more security.

I ask because I get the impression that tenants often find a sense of comfort with their LL's over time and are more likely to get lacks in their upkeep of a property over time. Sometimes they add a pet under the radar, etc. Damage and poor upkeep especially seem to occur during the chaos of moving out. 

In addition, the cost to repair any given damage done to a property is relatively uniform over different markets (especially if you do the repairs yourself). Sure contractors cost more in higher end markets, but the materials are roughly the same in price, while the deposit can differ significantly. 

Does anybody do this or has anybody every tried it? What pro/cons do you see in applying this concept?