I currently hold 2 months of security deposit for them. 

Rather than doing damage deposits, look into deposit insurance programs like Rhino (only one I can think of off top of my head). 

How do you all complete the move in process, lease signing and collection of 1st month rent and security deposit in a streamlined and smooth process? 

6 month lease with the option to lengthen month to month at same priceThe tenants supplied a $1000 deposit and the insurance company gave us a $500 nonrefundable deposit and a $250 non refundable cleaning fee.So far, i'm happy with the process although the insurance company rep wasnt very responsive and took much longer to get the tenants in than it should have - mainly because they work 9-5 and no more.Regards,--Dave

Fees are not refundable, deposits are.

would you sell your car to someone without a deposit who promises to pay for it in a couple of weeks?

I'm looking for a low min balance, possibly to have bill pay or can I get checks, I don't mind mobile depositing. 

About a months rent would be covered by the deposit they wont get back when they move out.

Other things in his LOI were that we grant another option, that we refund the security deposit, that we allow unlimited assignment without us granting consent, etc..I'll go with your option #1 above and simply decline his other proposed changes and see if we can preserve the Renewal concept at a new rate that bakes in his commission (and then some) - if he wants to earn that commission, let him go and sell the package to the tenant.  

In the past I have asked for a higher deposit but I just dont want to deal with any potential non payment issues nor evictions.