Renting with no security deposit or dividing the security deposit into rent

[Alex Place]

I own a few rental properties and had a question that I wanted to run by you all. My wife and I own a small real estate investment company and while our goal is to make a living off this company, we don't want to do it on the backs of our tenants. We despise slum lords and land lords who are jacking up rent just because the market claims we can. If my mortgage is $1,000, we're not charging the market rent of $2,200. We might charge, $1,500 or $1,750. Our hopes are to help people who are less fortunate than us, raise the total wealth of the community, and attract interest ensuring the properties are rented out full time.

My question to you all is, are security deposits worth it if you have vetted the tenants properly? We all know that a large barrier getting renters in is the ridiculous practice of first months, last months, and security deposit upfront. We are highly considering eliminating our security deposits knowing that we are taking on a risk.

Thoughts?