I guess I could also see the side that if the evicted tenant's debt is headed to collections, then the SD would probably be needed to be applied there first (at least for the tenant's sake in potentially paying it back).

Let their drama be theirs alone and just worry about collecting the total rent amount each month.

I'm sure she wants to keep that credit score and doesnt want collections company trying to contact her at a school, or get served at school, that'd be pretty embarrassing, and just not a good look overall

The only costs you are legally required to segregate are the deposits collected. 

Now collecting the judgement is another story.

lease execution/rent collection and expense tracking??)

In any action with respect to this Lease, the Parties are free to pursue any legal remedies at law or in equity and the prevailing Party in litigation shall be entitled to collect reasonable attorney fees and costs from the non-prevailing Party as ordered by a court of competent jurisdiction"I think this should protect me.

You can collect rent while it sits vacant and releasing fees. 

Items to consider when you rent the homeYou will collect gross rental income and pay for expenses(Insurance, RE Taxes, Interest, Repairs, etc).

Collect your fee with the rental application and make sure you get a list of their three past landlords.