Glad to hear that most of the people here are also concerned.I haven't been asked for any fees or wires yet, just the application (which I haven't filled out). there is no 6 to 7% interest loans  the only exception is a local community bank where you would have substantial deposit relationship a local project etc..

Remind them that the security deposit cannot be used towards the last months rent. 

We are currently using RentRedi but there is a long lead time from when the tenant pays to when the money is deposited into our account...sometimes up to 10 days.

So, for example, I can have separate sub accounts for each property's security deposits, CapEx and even profit in addition to my general bank account for each property.

Will they allow you to receive direct deposit?

Deposit Trust report12.

The 1% is when it's a bank and the sponsor has VERY significant deposits and/or other business with them and uses that as leverage but that's not applicable to anywhere here.

Am I responsible for returning or to try to get their deposit?

The tenant moved out in June 2023 and is now contesting $500 I withheld from the security deposit.

Collect a reasonable non-refundable earnest money deposit up front (say $10-15K), and charge them above-market rent for the opportunity.