The security Deposit is for damages not contractual issues.

I reminded the Director of the fire when we reviewed the current policy but it seems assumptions were made that damage was caused by asbetos. 

The property will have a higher risk of damage also due to the stay at home use, so repair costs are likely to be higher.  

Hey @Mark Gallagher, my first cancellation got his refund just fine, but the damage deposit I charge has been held up for some reason.The second cancellation hasn't said anything about not getting a refund.

It probably includes something about notice and you can likely keep their security deposit as damages.

Important to note: If the Tenant/Buyer fails to make payments for 60 consecutive days, beginning on day 61, without any notification needed the Tenant/Buyer may lose all rights to this said property, plus all prior payments made will be forfeited to Seller/Landlord, and be considered, “liquidated damages”, plus this “Lease To Own” Agreement will be considered “null and void” on day 61". 

I am all about developing systems, and if there is even one outlier in a process, I essentially no longer have a system.If I post a physical notice on their door, I still have the possibility of a denial of receipt ("it was not there when I got home that day!")

But even then, you will need to know the ARV for the area and what the rehab costs will be to know if it is worth the effort.As to your question on how it can be affected, well worst case scenario, your tenants can't or won't pay rent and then you can't evict and when they finally do move out, you will likely have a very damaged property.

People can just say over the phone that they need relief.What kind of damage will this do later down the road and where is the opportunity for investors?

It had lasted about 4 hours before the owner accepted an offer but we put in a full price backup offer and assured the seller's agent that we were comfortable with the damage we had seen and would be easy to work with.