Houses are in short supply, and buyers are gobbling them up. 

As I understand it, an increase in demand in excess of supply leads to an upward price change.

Seldom is $1163 used as a lease amount and less seldom are all units leased at the same amount, since there will be variability over time and most people don't move in on the same day, month or year. 

With about one house every other month coming for sale under $1M and 10 offers each time it does I’d say demand is out pacing supply.

There's such a lack of supply for housing and lodging there that I'm not concerned at this point.

In your case the 30 day clock has not started so at this point you are not required to do anythingWhen a forwarding address is supplied, provide an itemized list of the deduction and send any funds remaining(if any)If the tenant still owes money for damages a landlord can file a small claims action against the tenant for less than $200. 

I am looking for the best way to protect a business that will be supplying the initial funds for the real estate investing company.

There are too many variables involved in this type of deal for anyone to give you a really good answer on here.

I've heard of mentees that started out cleaning up construction areas on a flip at the end of each work day or picking up supplies at Home Depot and delivering them to the job site.

How can leases take variable inflation into consideration?