Small claims court is your best bet.Try to be a nuisance to them by calling them everyday as often as possible,pass out flyers to the tenants advising them of the lawsuit so they know who to complain to personally,etc.Force them to throw up their hands and give up the lousy $500.00.

The only concern he had, which was valid, was lawsuits.  

I'd rather wait an extra month and be sure all obstacles have been cleared than end up with a dirty title or a lawsuit challenging ownership. 

Judgements or the costs of defending a lawsuit?

Generally, if amount of damage is greater than the amount of the security deposit, I'd threaten a lawsuit. 

If they will be turning around and renting it our, then they would get a Rental Dwelling/Landlord policy.The seller should be added as an additional insured as they still are tied to the property and could be named in a lawsuit. 

If your research reveals your potential tenants are members of a protected class and you don’t offer them the rental unit, you could be exposing yourself to fair housing complaints and lawsuits.

It probably won't become active for quite a few years.There are lawsuits getting ready to be thrown around.Sit back and entertain yourself.

Because the rents were so low, there was a lot of deferred maintenance, a previous lawsuit with a neighbor that a tenant told me about, and problems with garbage pickup because bills werent paidOverall, If I had believed the financial statements, I would be in deep doo doo now.

So they can expect me, and other Landlords, to file tax appeals and lawsuits regarding this unfair Rent Control Ordinance.