If I were in your shoes and you wanted to keep them on MTM I would have them still sign a MTM lease and make the one resident pay a deposit, assuming you can sign new MTM leases in your area.I personally would still probably shift them to longer-term leases anyway, but it's not a bad idea to feel them out for a few months.

It can be a huge pain to get started but you do get your rent direct deposit every month.

Ziprent will write the lease, execute it, then get the tenant in the unit and collect first month's rent and deposit.

Most legal disputes are over security deposits and for small amounts.

The vast majority of lawsuits against Landlords are for wrongful eviction, security deposit disputes, and Fair Housing Violations.

Laminate countertops can hold up pretty well and if damaged, will need to come out of the security deposit - lower cost product, so a larger percent of it gets paid for if damaged. 

I also let him know that I would need 3 months of bank statements showing deposits going into his account from the business.

Others will collect first, last, and a smaller deposit.

And this is CRE, so it's cutthroat, it's no one's problem but your own if you lose an earnest money deposit. 

So the total amount that should be paid will be rent for remaining days in month + security depositORrent for remaining days in month + next month + deposit - I don't know when would this situation arise.