After it sits for 4 days (to let all the germs die)I've been pondering on collecting more than first months rent or increase security deposit or prepaid rents till everything is calmed down. 

If you wanted to keep their deposit, you would be in for a battle.

And finally, to legal action.I know every project has a budget and many are tight, but I have found through doing many many rehabs, that the only contractors I am willing to work with are those that will operate on a 20-35% deposit for materials and remainder on completion and inspections passed. 

That rent can be a lease option where the tenant pays a deposit for the option to buy it outright in a few years. 

So I was planning on moving into my new apartment (Paid a $500 security deposit) but due to COVID-19 I lost my source of income and I spoke to the agent and told her I cant afford to move in at the moment and asked for my deposit back but she said it has been forfeited, is that fair?

They expect me refund the majority of deposit to pay the other bills they have accumulated.

If a vendor charges me $217.37 to repair damage found in the home during the walk-through, that’s the exact amount that’s going to be deducted from the tenant’s security deposit. 

Maybe we just leverage less, or maybe we get 2-3 months deposits in the future....or like some places 1st and last month's rent (in my market we only get 1st month's rent currently in most cases) or maybe there will be loss of rent insurance, and plenty of other solutions.

Current pipeline of properties under contract are closing with about 16% of contracts withdrawn.Buyers are canceling contracts often leaving deposits with Sellers.Investors should re-evaluate resale values in light of the new reality.Any other regions showing similar declines ?

The tenant did give me a security deposit of $1200 on March 30th.