I've heard of a seller acknowledgement form, having a limited power of attorney, nonrefundable deposit, etc.

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

I assume the security deposit is one month.

Try to get her out, use the deposit to turn the property around, and try to find a new renter quickly.One suggestion: I would only forgive the July rent if she works with you to market and show the property to new applicants.

Context:*For my business - I had initially setup a profit-first system w/ multiple bank accounts at my local credit union*For the properties under management -  I setup two trust accounts (rents and deposits) with Chase. 

Here's what I was thinking...Can I ask him for a deposit to hold now that will then be used as his security deposit? 

Write yourself a check made out to 'cash' and deposit it for the funds needed.Also, you may want to check if you need to KEEP 150% of the funds needed in escrow with the town.

Imagine if there was damage when a tenant left exceeding the 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.

This allows you to ladder investments if you're saving up for a big deposit or if you just want the option every few months to extract principal or reinvest.