In Massachusetts, helping your non paying tenants find new housing that they can afford and paying for their moving costs and new deposit can be cheaper than the long eviction process.

Also lower your rent a bit ($1300) and reduce your deposit to $700. 

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

All things being equal, I would accept these applicants, but I would require them to pay a deposit equal to two months of rent.

The perceived benefit to the investor is they either get the inflated price, or if the deal goes "bad" and the tenant defaults they get to keep all the deposit money and rent and all that.

Also helping was a relationship with that bank (deposit accounts) and good credit. 

Property manager (PM) 's lawyer continued the case to get the unpaid rent from the tenant.PMA between landlord and property manager(PM) has also expired so landlord got the property back , but when landlord requested to settle the account and the deposit( there is one month deposit from landlord also), PM refuses since the lawsuit is going on with the tenant, Additionally PM is still charging the monthly property management fees from landlord even though landlord is managing the property.Landlord is done dealing with PM and requested the PM to withdraw the lawsuit against the tenant ( landlord is aware that he will loose 2 months rent), PM came back saying they cannot withdraw the lawsuit since that will violate fair housing law.QUESTION:Does withdrawing unpaid rent case against the tenant violate fair housing law ?

Quote from @Phillip Austin: There are two alternatives to a security deposit, which I speak about in my book.

Sellers rarely mind the low deposit and extended closing period due to the nature of the property, or at least they can be made aware of the fact that their lot has issues that will take MY time and MY money to solve and then they come around.My terms on the flip are: Minimum 10K spread between purchase and flip value.  1-2K deposit upfront to hold the property for 7 days then the deposit becomes non-refundable after the 7th day and the buyer has the same amount of time that I originally negotiated with seller typically 8-12 months(its a purchase contract but because of contingencies its essentially an option).  

Or they run a scam where they pretend to be the landlord and steal prospective tenants security deposits.