@Chris Magistrado,Legitimate buyers might request an inspection for due diligence.

They have always returned principal when requested in the past, as well. 

Given all your data on historic pricing, average length of stay, and pricing at the 25th percentile, please let us know if you're able to push up the VRBO chain to speak to a Supervisor (or equivalent) and have them verify the data that supports your position.I can share that calling the VRBO support line: 877-202-4291, identifying yourself & property ID, and requesting a Supervisor politely and repeatedly, can lead to different outcomes.

You can simply request a separate check for the $100 increase to bring the total deposit in line with the new rent amount.

Quote from @Aaron Kuehmichel: When the tenant requests an improvement, it's OK to say no.

Since this is my only property I do not mind and with my flexible schedule I am able to spend time doing this. 

We completed our due diligence within 10days and once the report came back, we immediately requested our deposit back. 

Nearby, Seaside Oregon is another majestic, highly requested and feasible vacation destination for STR investment.

Some of your requests may fall outside this manager’s standard practices, and customizing services for each client isn’t practical for most PMs.

This is what blows my mind about the cults of seller finance - they teach you to pay anything for a home because you can put little money into it.