She collects the rents, handles any tenant issues, deposits rents, does lease agreements, and handles our social media presence.

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

My question is do you have a separate account where your expenses get deposited into?

There are interrogatories, depositions, hearings, summary judgments, and on and on.

No deposit is required!

It is very common in CRE to bait and switch or have a loan denied and paying $2k+ for an appraisal and a 1% deposit. 

No deposit is required!

But the damage caused by hanging them (namely puddying the holes and touch up paint, or repainting walls if touching up doesn't work) will come out of their deposit. 

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

However, when someone breaks a lease early, they are often not in a financial position to pay those, so you can apply their deposit to those costs, and after that, good luck.