For instance, what are the rules around security deposits, eviction procedures, or property maintenance?

Specifically; rules, regulations and permitting procedure.

But for many people, it is one of a number of sources of deal flow, to add to MLS listings, wholesalers, direct owner outreach, auction, etc.Assuming you are specifically talking about sheriff auctions, just make sure you familiarize yourself with the general procedures for the auction.  

That means having procedure and protocol for every situation--or at least, every common situation. 

You should consult a real estate attorney or tax advisor to handle the legal and procedural details.From a tax perspective, there are several implications.

This is something their screening probably would have caught, or their system would have a legal procedure to deal with it.

Well I called to complain and their response was that this is their standard operating procedure and they would not have shared my private financial information if I had instructed them otherwise.WOW...just...WOW!!

Then start following the procedures for your area. 

They don't understand how to price effectively, study the market, set boundaries with tenants, establish policies and procedures, communicate, and dozens of other things.

Just document the current condition before the cleanup process and follow any other local law or procedure that is in your municipality.