You can deduct that amount from the deposit and refund the remainder.

These self employed 2nd mtg's are typically based on alternative method of caluclation like profit and loss statements if you're self employed or the last 12 months of bank statement deposits using a formula to derive an income from these deposits (like 50% of all annual rolling 12 calendar month deposits X 50% /12 months = monthly income).

If you’re concerned about the cash income, you could consider additional safeguards, like a higher security deposit or using a guarantor.

Then after they take their fees, and any repair costs for the month, I get direct deposits to my account of the remaining balance.

At a bare bones minimum, the letter confirms the start/end dates of the lease, monthly rent, paid-through date, absence of any prepaid rent other than the current month, and security deposit amount.Better, it will include statements there are no unresolved claims or disputes or repair issues with the current landlord, and no verbal or written side agreements.Better yet, it will include a copy of the tenant's lease, and a confirmation the lease is a true and correct copy with no amendments.

(Housing Choice Voucher Program, HCVP)Guys it's 180 degrees...I had TWO properties go from voucher to inspection to HAP contract/rental to direct deposit setup within 10 business days each.

Since then she’s hired a lawyer because she felt that it’s unfair that shes only getting 30 days notice. she supposed to move out on the 26th of November she wants him to use the security deposit as last month rent but my friend runs the risk of the place being trashed if he does accept this will he still be able to fight for more money if the place does end up trashed and is there anything he can do to fight her to get the last months rent 

Don't wrongfully evict, avoid violating any fair housing laws, don't be a slumlord, screen tenants well, avoid security deposit disputes, be professional with your tenants and take care of your properties.

Be very clear that they must transfer the deposit along with a complete set of tenant records (application, lease, payment ledger, etc.). 

For Guarantee I think in the way David your thinking about Guarantee the only one out there is FDIC insured deposits with the full faith and credit of the US Gov.