I would not bother with holding a property and scaring off other qualified tenants who don't want to bother with a property that is already taken.

If he is still trying to with hold the funds I would hire a lawyer.

Having another entire set of rules and inspections and paperwork to deal with, with a government agency that will make it nearly impossible to evict your tenant, and can withhold your funds for this and that - is really time consuming and a hassle.  

My daughter changed her income tax withholding so she had more take home pay, and saved the money to use as a down payment, and then made a deal with the IRS to pay them back what she owed them the following year.

The lease stated forfeiting deposit if you do not withhold the terms of the lease. 

During the move-out meeting with the tenant of Unit B, the landlord can instant sense that the tenant bristles when the landlord mentions she may have to withhold part of the security deposit to cover the damages. 

If they continue to withhold rent, I would file eviction, if you have everything well documented.  

If the tenant tries to withhold rent from you next month over this promptly serve him with an eviction notice.On a side note.60 units is no small building.

If you're paranoid about it, withhold riparian rights from the lease, they aren't leasing the back  50 feet where the stream is and being there is trespassing, then post it, you don't need a fence.

. § 704.29), you can withhold lost rent, as well as other listed reasons, such as damage to the property, excluding normal wear and tear.