In my own experience in San Diego, I have set up a bank account for my LLC and each member can deposit equal funds into the account at the same time, and then the pot is used for rehab.

Offer your landlord $200 and if he doesn't like that then let him take you to court, or if he withholds your security deposit then take your landlord to small claims court.There is a normal amount of wear, dents, chips and discoloration that is an expectation with countertops.

I doubt it was to keep the deposit as it was minimal. 

Alex, this could be a difficult situation because the tenant has essentially been trained and probably identifies as a victim with a right to free housing.I would make the tenant one offer: if they move out within 30 days, you'll hand them their deposit plus a full month of rent.

The last straw as when a Section 8 Applicant who passed their background check came to the property management office with their full deposit and RFTA paperwork after seeing the property and the PM told them that someone else had already come in with their deposti before them and had signed the lease.

Most of my tenants deposit rent into my business checking account. 

(Or equivalent in your state)Is she expecting, like many tenants do, that you’re just going to apply the security deposit to the last month’s rent?

Does anyone have any recommendations if I should set up a bank account for the LLC so that the property management company can direct deposit monthly rents into that account, while our mortgage gets paid via that account as well?

Show it on your deductions from the deposit returned per local law. 

You need to get an estoppel at a minimum so you know what security deposits, rent amounts, etc.