Calif and that I should drop by my sister's house for drinks by the pool.

Defiantly not on the deposit, it does not belong to the landlord it is the tenants money and must be held in a separate bank account until they move out.As for the rent if you give it to the seller you will have no money to pay the bills and will have to use your reserve funds.

Never ask advice from people who are where you don't want to be. 20 years from now the car will be long forgotten but the returns from real estate will still be paying dividends.

Hey @Porsche Thompson do you belong to a local real estate investor group??

Focusing on the "not exactly Beverly Hills" of that statement - let's not forget that this individual is living in an asset (worth a good amount of money) that belongs to you.

The roads most likely belong to the builder.

Both seem to be long term tenants that have been cash flowing for a long while, and removing them could potentially result in the loss of near guaranteed income. 

So it's not hard to include it as part of the rent, if you figure out a way to reimburse them.Landlord liability insurance does not cover tenant's belongings.

@Rich Vetter I really like the drink/honest approach but unfortunately I'm out-of-state.

It would belong with a group that might include property management, tradespeople, realtors, general contracting, etc.