Investment Info:Single-family residence other investment in Cherokee Village.Ozark Gateway Realty leased to tenants using Jack and Landlords' guarantee in lieu of accepting security deposits.

For tenants that want to early terminate, we offer 2 options: one month rent + deposit, assuming there's no damages, and they walk scot-free, or they stay current on the rent, utilities and lawn care, and we will try to re-rent as quickly as possible once they vacate.

They may provide instant income upon purchase, but that could be thrown away by having to evict them or pay for damages that are not covered by a security deposit that you did not set!

@Ian MacDougall maybe a deposit to hold, then sign the Lease after they’ve closed on their house sale.

No biggie, but the second buyers walked when they saw the HUD statement, realizing they were paying too much, so my buyer was scrambling to find new buyer.He refused to cancel contract even to get his deposit back and several days later attorney wrote letter threatening to sue to compel enforcement of contract, which they did after changing title companies.

If the owner is cash strapped maybe that deposit up front could sway them and you’d avoid the high interest of a HML with the same up front costs. 

If they have an in person Event I could make that happen.It’s not about the time commitment per say it’s about the location and being able to get away and book those time slots off easier in person. 

If the check doesn't come back clean, I'd keep the deposit and find another tenant.Make sure the lease states that they are both responsible for the rent should they split up. 

Do you charge a full months rent for security deposit? 

For instance in certain cities in and around Cleveland OH  there is what is called POS .. and when properties change hands the municipality does an inspection and requires a large sometimes very large deposit from the buyer with a laundry list of things that must be addressed  ( although most of it U would normally do in a rehab.) but you have to put the money up AND you have to complete the work to get your deposit back.. so in essence you need enough cash to rehab twice.. :(   So implementing this in many markets will not be difficult.