I have a separate interest bearing account for security deposits as required by my state laws.

With the tech I am using (a lesser known PMS) I am able to automatically screen guests, get their selfies, write leases, and collect deposits in my work flow even for Airbnb guests.

Generally speaking, with SFR or small multis, I just rely on the lease/rent roll (and some form of proof of payment; i.e. bank statements, deposit receipts, tax returns, etc.). 

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

The deposit amount when working with a lender comes from the lender - it is basically the amount of skin the lender wants you to have in the game. 

The tenant was seeking $14k for security deposit and furniture that was left in the property.

We did give 50k deposit up front which he says he will use towards finishing up.

Once Apartments.com is going the money comes without much thought. i check on the first to see that the transaction has initiated then again on the eighth to see that the money deposited.

Make an Earnest Money Deposit.5.

Quote from @Jay Hinrichs: Loudoun County Virginia80 acre parcel Entitlement for 30 1 to 1.5 acre estate lots and 40 acre remainder parcel with large million dollar home.Purchase price  3.5 milEM deposits non refundable  50k up front 50k during Entitlement cost ( survey, geo , water , artifacts, Soils Engineer , city fees)  350k Capital partner  ME  provide all the cash up front.  450k to my client who found and prosecuted the platMultiple offers from all the biggest builders in that market  IE Toll  Lennar DR and a few regionals.Closed today with 1.1 million cash profit  PLUS the 40 acres and home value about at least 2 mil free and clear.My fee is double my money so we made 450k today.My client made about 650k in cash and the property  free and clear..