Don't be surprised if the insurance company has the family provide the security deposit.

Tim, in lieu of a damage deposit, have you utilized A deposit insurance such as Rhino? 

However, it does mean forfeiting the deposits which is tough to swallow. 

I did not read the rules around security deposits. you may be allowed to use those funds and still file a small claims action for any remainder, but I can't imagine that it would be worth it if you have at least one month's rent in security deposit. 

Tell them to get out in seven days, use the deposit for unpaid rent, cleaning, and repairs.

Best practices for security deposit deductions (damages)?

You need lease and deposit check at closing so the property has to be move in ready not a rehab.

I'm absolutely not interested in leasing fast at all and I'm extremely picky about tenants and I do things like require a large security deposit (even for section 8 renters, I have three of them and love them), don't supply appliances, take my time doing background checks and arranging multiple calls/meetings with potential tenants. 

I gotta say, I had a hard time deciding on the monthly rate and deposits.

In this way, I never need to be concerned about justifying my charge to their deposit because the damage is clear and obvious.