You can't walk from a deal because of the virus, without losing your deposit, unless you lose a job or the mortgage falls through.

My last property management company still owes me security deposits and rental income (totalling about 16k).

Tenants directly gave him the deposit & first month rent.

They know we are not buying the property.Our deposit often also is between 20 and 100 dollars, again... we are not buying the house so ...The trick here is, just be transparent.

Everybody has a lot going on right now and individuals have to work through this, some will be fine, others may see a reduction in income and may have an issue coming up with rent, at which time I will work with them individually to come to a mutually beneficial solution whether that be accepting partial rent, utilizing a portion of the security deposit, or coming up with a payment plan.

We also raised our security deposit insurance coverage.

Can you take the damage out of their deposit?

You can decide how that goes, but at least the first month and part of the security deposit for your trouble.

It is literally one piece of paper and a 1-line addendum, but the purpose of it is to protect your deposit.

@Kristen Rolinski, I cannot speak for Chicago specifically, but I always send formal communications like this, security deposit returns, etc via certified mail, signature required.