For Deposits, unless the program will also provide the Deposits (some do, some don't) they must have the appropriate funds.

Plus, the fully finished walkout basement offers endless possibilities.

Usually it is about the security deposit or the landlord failing to make repairs under the lease. 

Does anyone recommend a deposit alternative insurance company?

These are some of the ways the clients could be affected by property managers who are not prepared: Extended VacanciesInadequate marketing strategies and tenant screening processes can result in prolonged vacancy periods, translating into substantial lost rental income.High tenant turnover due to poor resident relations further exacerbates vacancy losses.Inadequate Maintenance and RepairsNeglecting preventive maintenance and delaying necessary repairs can lead to accelerated property deterioration and higher long-term repair costs.This can also negatively impact tenant satisfaction, contributing to higher turnover rates.Legal and Compliance IssuesLack of knowledge or disregard for landlord-tenant laws and regulations can expose investors to costly legal disputes and penalties.Failure to properly handle security deposits, evictions, or fair housing practices can result in significant financial liabilities.Ineffective Financial ManagementInaccurate budgeting, expense tracking, and financial reporting can lead to uninformed decision-making and missed opportunities for cost savings.Failure to optimize tax strategies and leverage available deductions can further reduce net returns.Diminished Property ValueInadequate maintenance, high vacancy rates, and poor tenant screening can negatively impact a property’s perceived value and appreciation potential.This can significantly affect the long-term return on investment when it comes time to sell the asset.While a 10% management fee may seem reasonable for a well-performing property manager, the cumulative impact of mismanagement can quickly escalate the effective cost to investors, potentially outweighing any perceived savings on the management fee itself.

Plus, the fully finished walkout basement offers endless possibilities.

For example, I would tell them that if they leave in less than 15 days and there's no physical damage to the property, I will hand them their deposit and give them back the entire month of June rent so they have money for a new place.

How do we protect ourselves from a tenant causing us significant damage in excess of the deposit amount? 

Secondly, how do I deposit the Security deposit into my account from Venmo in order to keep it separate from my other funds?

there are a few options for borrowing earnest money when you need funds to get a property under contract:Gator Lenders - This is a company that specifically lends money for earnest money deposits (EMD).