A bit off topic but I think its important to understand that someone can bring a dog (including a APBT) in a non pet friendly house under the FHA laws as a ESA (emotional support animal) or SD (service dog).

if i were already loaning them one of my houses, i'd be skeptical to act as their bank and loan them money as well, albeit out of their own security deposit.but that said, i am holding their SD in good faith so yea if its legal i'd do as u say and loan them $ out of their SD to bring their gas bill current but require it to be replenished over affordable installments paid starting ASAP meanwhile yea the gas co monthly plan helps defer the total due, right? 

I can't speak for other places, but in Texas you must be a licensed Broker/Salesperson to do Property Management; so to say they are unregulated is a broad ignorant brush.Also, in Texas, the standard Texas Assoc. of Realtors PM agreement outlines the PM keeping late fees, keeping the interest from the account the SD is held in, and a few other items.

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I am a local investor, agent and own a construction company in SD.  

Additionally, courts in many states do not like landlords playing games with security deposits and if they determine you have wrongfully withheld SD money, they will make you pay the tenant 2 to 3 times what you should have returned to them in the first place.This is not to say that you cannot have a justified reason for refusing the new tenant, or keeping the SD, you just want to be very careful and talk with an attorney.

In Maryland you have 40 days before the SD is required to be returned.  

The letter above incorporated with: your rent is this, your sd is this, your lease expires this.

Why dont you speak with your tenant about the damages and that you are looking at some deductions from the SD.

It depends on what the lease says.... my leases say SD cannot be used as last month's rent and that if SD is used to pay last month's rent then rent is double.