Quote from @Kadia Lawrence: Deposits are refundable.

Also, tomorrow I will be requesting a Deposit to Hold of $500 which will add to their legitimacy.

How should the security deposit be managed in this transition?

I don't withhold security deposit returns for BS things.  

Also forces the seller to deal with the deposit reconciliation. 

Then deposit EMD for transaction with property owner?

I think this would make sense in the long run for the rental property as it will extend the life of everything it touches like the Sink, faucets, showers, water heater, dishwasher, and Clothes washer while also providing clean drinking water in addition to the reverse osmosis drinking water system I already have installed.The main problem with this hardness level is that we get a major deposit buildup on all of these items, which will eventually clog up the faucets for tenants and lead to rusty shower enclosures that take forever to clean.In addition to this, it looks like we could likely have the salt added every couple of months by the property managers in addition to that it would allow for a quick inspection from them, and then also we would instead bill the cost of the service onto the ledger for the tenants.For reference, it does not look like the landlords in the area have water softeners.Thank you everyone for your input ahead of time.

No security deposit either. 

I only have savings accounts for my security deposits.

There are also quit a few orgs that help the tenants with their move in deposit if they do not have funds for the deposit.