The security deposit is for damages , tell them no and start the eviction process

I wasn’t picking on the way you said it.Would it shock you that there are attorneys out there now who specialize in going after private lenders, claiming their intended business-purpose loans are really for a consumer purpose and subject to all legal penalties, damages, and consequences?

I can see this working if you get a theme and online reputation.

To name a few HVAC for unit 1 is 20 years old and could not fully inspect the heat, the pipe to the sewer has completely dropped and is not connected, in basement the window header, subflooring and joists are damaged from termite activity, and their needs to be some tuckpointing and masonry work done for the exterior brick. 

I'd rather have 3 busted potable water lines to one damaged yard sewer line any day of the week. 

Customer reviews are the backbone of a company's reputation.

It can also capture damage to the property for which the tenant will be responsible so they don't claim it was in that condition when they moved in.

On another occasion I had them inspect the property after purchase and they informed me that due to the condition of the roof they were raising my deductible on any roof damage to $5K instead of the $2.5K for the rest of the property until I installed a new roof.   

Have a 1960s 30 unit single story motel where we are coming up on some end of life issues: the cast iron plumbing is disintegrating underneath bathrooms, radiators are starting to leak, electrical is in poor condition, and just today, discovered significant termite damage affecting multiple rooms.

You have to do lots of damage control in that buisness and be a strong negotiator.