It will depend on the amount of security you are offering, the attractiveness of the interest rate, and your ability to raise cash, among other things.

Each tenant also signs a lease agreement for added security. 

Assuming it's written in your management agreement somewhere that states the owners are current on all financial responsibilities related to the property, does anyone require them to actually provide a current mortgage statement, HOA payment record, taxes paid, etc..... at least at the time of the original management agreement signing.Recently had a new owner sign the agreement, only to find out after we had secured a new tenant for them, that they were in financial distress to say the least (inquiring about bankruptcy) .

And where do you think you can get rents.We've been able to secure 80% loan to cost on these types of deals with a credit union recently. 6% is a good rate, but I would see if you can shop around the LTVGood luckGino

@Sam TrightBesides the other comments above you also start really walking or crossing the fine line of selling securities when you start bundling up parts of a note and selling it to different people.

We announced the closure of our Series A last week, securing $26M ($33M to date) in funding from a top venture capital firm Andreesen Horowitz. 

Should I have them pay right now or out of security deposit whenever they move out? 

State/local are determined by your state of residence, not the state the property securing a loan you hold, or property you own is located in.  

Also, is he entitled to the security deposit (minus any repair expenses)?

If they want a security alarm, they pay for it (not really an issue here).