Then how do you know if he has the money to pay the deposit and rent if you don't look at the bank accounts?

Also we are thinking about implementing a security deposit, does anybody do this. 

If you have a low credit score (or in this case no credit score) there are fees or an increase in the security deposit. 

The vast majority of lawsuits against Landlords are for wrongful eviction, security deposit disputes, and Fair Housing Violations.

I just received a digital copy after we received the deposit and first month’s rent. 

I left that money in HYSA,  deposited it in  retirement accounts or brokerage accounts (mostly stocks, index funds, a few REITs) 

Current negotiation from LL Commercial lease Monthly Rent $6000 Security Deposit will be $7000 (based on last month rent of the lease term)Six Month Build Out Period - June 1 to Dec 31, 2024 Lease to start January 1, 2025. 5 year term During the build out period the tenant would pay $3000 per month rent (June 1 to December 31, 2024)The balance of $18,000 from the build out period would be paid back over 12 months at $1500 per month on a separate agreement.

Do I have to tell him or can I just deduct the removal and replacement fees from his security deposit?  

I have a "keep me out trouble" deposit with an eviction attorney.

That loan will have some bank hand-holding that people dislike (annual reporting requirements for the first few years, all rent checks must get deposited into an account at that specific bank so they can see it coming in and have an automatic "early warning signal" if they drop off, etc), but hey in their case I'd say it wasn't unwarranted, their only track record is that of mismanaging after all.