It may be hard to find unbiased advice on account of that.To me, it seems that his/their core competency is promotion and fund raising.

If you have not done so already ....Time to invest in kick *** accountant and lawyer.   

I have totally given up on Quickbooks though it remains the best accounting software for the non CPA type 

You can create an account to advertise yourself as a host or a guest (or both) and get matched with others.

How would this be accounted for for general accounting and taxes?  

Getting a bit overwhelmed with all the required County Level and City Level business licenses, STR permits and Tax accounts (Business Tax, Franchise & Excise Tax, Sales & Use Tax) to register with the state.

Quote from @Max Emory: @Bob Asad, there are a lot of different account structures out there but absolutely keep security deposits in a separate account from your opex/income account. 

deposited in a demand deposit account?  

A good real estate accountant can save them thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.I recommend that they find a tax accountant who specializes in real estate taxation, business taxation, financial planning and tax planning.I would also recommend that they look for a accountant willing to work with them throughout the year, who can help them strategize and who is responsive when they want to know the consequences of the financial decisions they are making throughout the year.Good luck.

They get a higher return since they are covering housing cost, have the $250k per spouse primary residence deduction in gains, is a savings account, higher leverage position, lower interest rate possible, will pay more premium for location, etc.House might be overpriced for REITs but not for home owners.