(3) Regulations and procedures might be different in different states as a matter of fact even in each county in a state. In my case, I do use my lease and I lease to tenant. But I recommend you to take his/her case representatives name and contact info and call, introduce yourself, I even ask questions about the tenant although they may not answer, sometimes you might sense. They will explain the procedure and how the lease should be etc. I should add that i am dealing with the most unlikable Section 8 department of USA (I am absolutely sure about it : )
(4) I don't know there is a rule about that. Mine does not include anything. They pay the utilities (For water I am always on top of it, i ask receipts quarterly), heat and electric also belongs to tenant.
(5) My section 8 tenants are very long term tenants, so I am trying to remember how it was initially ??? Yes, there is always some timing problem at the beginning. If they are already section 8, things go pretty fast, because they are already approved. But not in 1 month (Gods in Section 8 Dept. never do anything in 1 month). I don't think section 8 pays for Security Deposit So my tenants paid. But there are other departments that they can apply and get the security money as help.For rent payment there is a lag at the beginning and they usually warn you about that. For example if tenant moves on June, I usually get two months rent in July, sometimes in August.
But these are for NJ and the county i usually invest. I know there are differences in other counties, so it might be different for you. By talking with case representative you will have all the information.
Good Luck, don't worry