I do not have a security deposit from them unfortunately. 

You also need to be prepared to give them your deposit business a as well.

I am just a person on an internet message board, but have known enough attorneys and seen second and third hand enough lawsuits to know you are getting dragged in no matter what.Just a few things to think about before you start spending money to transfer, just to learn that it will cost you a lot more to have things like commercial insurance, commercial mortgage, business utility account (not more expensive, but typically require a large deposit to remain on account), etc.

just be cautious when it comes to using these. ensure you've got a plan to pay that balance back in a relatively quick fashion as most HELOC rates can fluctuate which could make the numbers suddenly not work. i've leveraged mine in instances where i'm doing a BRRR and i want the deposit for a private money loan. i'm not using it as my downpayment and leaving it out there for a long period of time. 

Quote from @Cody Phillips: I would only do it if they paid for the full stay in advance, and a large deposit.

My PM charges potential tenants a two-month security deposit—could this be why we are pushing people away?

Offer a non-refundable deposit of 25% of the contract price.

I established a  mgt entity for leases, deposits, income, expenses, but never held any of my dozens of residential rentals in LLCs over my 21 year run.It's just tougher to get good mortgages and insurance. 

I'm currently being sued over $300 that I witheld from a security deposit return.

You could possibly apply more down for your escrow deposit to show your ready to commit to the transaction and not just a few thousand to tie down the deal.