This allows you to deposit the rent and pay expenses out of a business account instead of a personal account.

Never skip your due diligence OR I would charge the biggest deposit allowed in you state. 

@Vivek Kumar, For a tenant like that I might charge 2 months deposit (max allowed in my state).

I do not take the listing down until I receive the security deposit.

Or, am I overreacting and PMs truly just lease the property, hold on to deposits, and fix things when they're broken?

@Zehua Zhou,You can use a Fidelity non-prototype account to manage the rentals, but it will have some of the features available with the bank's checking accounts, such as having a debit card, mobile deposit, and bill pay.

The vast majority of lawsuits against Landlords are for wrongful eviction, security deposit disputes, and Fair Housing Violations.

And of course do NOT pay personal, or unrelated expenses directly from the LLC bank account (maintain an LLC bank account - do NOT use a personal account for LLC expenses or deposits!).  

Our preferred method was to have them deposit the money in our bank account, we gave them deposit slips. 

Project Parameters:Flips only, no buy and holdResidential onlyCost to Value (purchase and rehab budget) to be around 70% of ARV or belowProfit is shared at 50% (after costs, deposits and fees)Properties must have $50k profit or morePrefer homes in suburban areas with area population above 100kMost projects approved will be flips, wholesaling to our network is considered as wellSales contract should be in your name and assignable (we can make it work if it isn’t)Please include the following information in when submitting a project for evaluation with our funding group:-Stage 1-Initial Project Submission.