This is in theory a sunk cost for the tenants, in some cities in Washington you have to apply the application fee to the "move in costs" which cannot exceed the cost of 1 month's rent and including the security deposit fee.

If I was a landlord I would ask for two months deposit plus first months rent upfront to show your commitment, then rent to start 4 months from lease signature.  3% escalations a year and an option to renew for another 10 years assuming all rents were paid on time.  4 months puts the pressure on you to work full time to get the place where you need it to be. 

(and realistically a different fully qualified applicant will be given the lease while the first person tries to obtain additional documents)My lease allows for a small monthly pet fee, a modest non-refundable pet deposit, and verbiage that if they lie about the status of a service animal, that they will be charged an additional large fee for lying.

You can back out of the contract due to an unsatisfactory inspection and get your earnest money deposit back. 

Is this lease valid without receiving a deposit?

You can have the PM LLC collect all rents & other income and pay all expenses from an Operating bank account and hold all security deposits in a separate account that meets your state's requirements.

They could also retaliate by taking unfair deductions from your security deposit.

Deposit your money and make 5% interest.

Should I just keep his deposit if he’s not willing to pay another month or have him pay and give him the prorated price when property is ready to turnover or should I just let it go so that way, he can have the property as clean as possibly can be thank you

However they must be installed by my handyman and I set the expectations that they have 2 choices when they move,1) Leave the wall mount 2) Take the wall mount and repairing the wall back to original condition will be done by my handyman and will come out of the security deposit.