The deposit belongs to the tenant, not you, so it shouldn't be subject to any terms outlined in the PM Agreement.If you have a written contract, I recommend you dig through it carefully to understand what you agreed to.

Outside of real estate, I enjoy going to wine dinners, charity functions, date nights, piano bars, and nice dinners with my amazing wife.Excited to learn and connect with you all!

@Jonah Hartsburg The FCRA says you must establish and implement written policies and procedures regarding the accuracy and integrity of information you furnish to a CRA.

And a nice rehabbed cash flowing house with a new roof, hvac, driveway, LVP floors and updated kitchen and bathrooms.

While 3-5% increase is the tolerable 'nice' approach, it isn't on you to absorb market increases in expenses if you aren't on a yearly lease with your tenants.  

At a bare minimum, I would require a written lease agreement and a standard security deposit equal to an entire month of rent.

A number of articles have been written about this specific case, and there was a second class action, two years after that.You can always pull up the working relationship between the names of the principals (in their website) of WWC, and the person Mr Baines states in his article.

Design- in my market I don’t see crappy units, they are all nice.

Maybe so, but it seems that a "watchtower" style house would appraise. 

Anything can sound real nice on paper but reality is profound.