I mean just look at those that get all nervous with EM deposits even though they are not going to lose the money ..

There are no deposits in place.

Have a separate bank account for deposits and rental income.

@Brandt Thompson...assuming you're going conventional financing, and you're truly going to rent the property, just make sure you get a lease agreement signed and if you can't get a deposit, have a 1007/rent schedule done that will back up the lease, and you should be given 75% of the lease to offset the PITIA. 

A check-out list of suggestions for restoring the property to move-in condition, to enable the full return of their deposit.

I might consider them if I had no other candidates , but only with 2 months security deposit in addition to the rent. 

But now he’s asking when he’ll get his deposit back.

Would there be any reason for me to not get an FHA loan and put down a bigger deposit, any benefits to that?

At least in NJ its straight ad valorem, with the various tax assessors updating assessments in a periodic hodgepodge way...Pre 2007, our attorneys did the closings and the brokers held the initial deposits. 

The security deposit is not rent.