Deposits will not be returned (full or partial) until all tenants move out.If Tenant A didn’t come to you to get part of the deposit back they may have gone to tenant B, but they most likely walked away from it and I feel it is between tenant A and B to sort it out.Personally I would return it to tenant B, the active tenant in the current active contract.

No way is this a scheme to keep EM for the seller..Anytime I have had EMD disputes it usually gets solved with a 50 50 split since I know what will happen.. what happens is exactly as you describe.. money is to small to realistically hire an attorney to collect..

Get out of your comfort zone.

The market in Racine is much different than Kenosha and we have been having a hard time getting quality tenant applicants.

Unfortunately, we get too many calls from clients that got the run around, poor communication and service and/or were the victims of a "bait and switch". 

The seller said this is in a gentrified area so there's potential to rehab this effectively and get a high payout as shown in the last comp.

Here’s my recommendation to get it under control: For a quick fix, start by sealing up any gaps using acoustic caulk around outlets, baseboards, or other small openings.

Good job on getting started. 

These all require applicants to submit an acceptable Letter of Explanation addressing each specific issue and occurrence.Rental HistoryBecause a current landlord may say anything to get rid of a bad tenant out of desperation, we also require information for the previous landlord of all applicants…Analyze IncomeMany landlords require a month of paystubs from applicants and just use these to calculate a monthly qualifying income…Employment StabilityUnless an applicant has exceptional credit, we strive to determine their stability of employment…AssetsWe are one of the few management companies that requires a bank statement as part of our application process…Letter Of ExplanationAny time there are credit issues or we discover an inconsistency, we require a written letter of explanation (LOX)…UnderwritingTraditionally, landlords have only looked at the income of applicants…ApprovalOnce an applicant is approved, we require a nonrefundable Holding Fee to make sure they are serious…

In the mean time, if I have a property I am seriously considering, can I direct message you the address and get your opinion?