Here in California, that essentially means that the buyers earnest money deposit wouldn’t be at risk regardless of what they did.

Where I live it used to be 30 days - and I didn't think that was enough time for folks living month to month to pull funds together to save up, look for a place, get a deposit and 1st mo's together etc... so I always gave at least 60. 

Utilities start-up feesSevier County Electric will charge you a deposit.

Right on the bank statement you could see the following:- Federal & state tax refund deposits of $12k- Purchase at a care tire shop, assuming new tires for her car.

Don't forget there is more than the downpayment, you have closing costs, holding costs, deposit to a contractor to start work. 

Earnest money deposits are often required to secure a purchase agreement, signaling a buyer's serious intent to sellers.

Option money itself so many wholesaler either put up no money or ridiculous EM deposits like 25.00 or 50.00 .

I've seen cases where the LP backed out of the deal at the last minute, not only leaving the operator at the closing table without the capital, but causing the sponsor to lose their earnest money deposit. 

The sophisticated money is not buying in stagnant markets with poor fundamentals because they can achieve the 1% rule, can complete a BRRRR or because of more favorable landlord tenant laws exist just to highlight what’s rarely part of their acquisition criteria which is a stark contrast to the mindset of most within the BiggerPockets community.Since your focus is specifically on landlord tenant law component I’ll add those who follow the law, properly maintain their property, respond timely to tenant requests, use well drafted and fair leases and don’t unreasonably withhold deposits  find themselves in far less tenant controversies. 

The state doesn’t have rent control laws, but landlords are prohibited from collecting more than one month’s rent for security deposits.