In 7 years it's most likely rates will be higher than what they are today, and if you go with an ARM that rate will increase to match the increased rates. 

She will most likely have to notify the landlord of the problem in writing, wait a specific period of time, then deposit rent into an escrow account. 

She has paid the first month rent and deposit, total 2 month rent to move in.

Pet deposit (if any)4.

Then basically the tenant is building your 'security deposit' over time, without using that language? 

A tenant wants to get their security deposit back from another landlord so they can pay the SD on the property I’m managing.

Reduced rent for direct deposit tenants?

I also have been listening to many podcasts, youtube, and other financial information that point out that the banks have large buildings because they take the money that you deposit and loan it out at interest to someone else. 

Hello, I just mailed out my tenants security deposit (in full w interest blah blah blah) to their specified forwarding address via UPS and see it was delivered per “met customer”.

you see it says the deposit is refundable, is it talking about the application fee?