It's pretty reasonable and depending on the policy chosen, covers much more than a few hundred dollars for a security deposit.   

I have chosen to invest out of CT for now. 

Optimal results come from understanding these nuances and being able to shift and combine strategies to tailor to your specific goals and what the market has to offer at that time.The part that I don't necessarily agree with is that the path to true wealth necessarily has to be a ton of doors in a multifamily ... true enough, that is one of many paths to wealth, but I personally have intentionally chosen a very different path that has worked very well for me over the years.

If you want to be positive about it then realize you could have lost a lot more before being motivated to read the statutes around your chosen profession.PS it blows my mind how many people here conduct these conversations by text message as @Mindy Jensen said.

You could also check the National Association of Residential Property Managers NARPM.org This lists PM by state and area:Hiring a property manager is an important decision, and can be an asset for a property investor, but can also be a detriment if not chosen carefully and without some due diligence.

In any case, a replacement is straightforward.I don't mean any of this is easy to accomplish mind you, just that you seem to have chosen the right problems to work with instead of finding something with structural issues. 

There are investors we have chosen not to deal with, because I felt they were not entirely ethical.  

This person has 'shady' oozing from their pores.   

I have chosen the condo route.

When I leave the "select a forum" field empty it won't post without a chosen forum.