First, request the current rent roll, which details each unit’s rental income, lease terms, and any security deposits.

Security Deposit: Follow Oregon’s rules—return deposits within 31 days with documented deductions.5.

It also doesn't help that the newer generations want instant gratification so it's the perfect storm to buy into the hoopla.

I have prospective tenants who signed a lease on 31st of October and paid security deposit same day.

Quote from @Kadia Lawrence: Deposits are refundable.

Also, tomorrow I will be requesting a Deposit to Hold of $500 which will add to their legitimacy.

I don't withhold security deposit returns for BS things.  

What wouldn't be better than a Roth which is tax free, has no maintenance issues, and is "instantly" transferred to your heirs upon your death (any account names beneficiaries and is transferred on death).As always, it comes down to what one is comfortable investing in, or having somebody else invest / manage for you, and what can you effectively make money.

The township may eventually update its records based on this data, but it’s not an automatic or instant notification system.4.

Also forces the seller to deal with the deposit reconciliation.