Because unless you've got a large deposit, willing to waive inspection, and willing to pay at/above asking you won't get the house you want right now. 

No pets or smoking.He has a security of deposit of $500 that would transfer to me.Home was updated in 2012 with new floors including sub flooring. 

I also communicated with the PM about other things (filling the vacancy, another tenant's security deposit, and other matters).

If by the time you complete a background check, credit check, employer verification, conversations with previous landlords, an application fee, deposit and personal interview you're still having problems with your tenants, you're doing something wrong.And if you're unsure about being a landlord in general, then you can either put people on month-to-month leases so you can quickly get rid of them, or hire a property management company to manage it for you.While the landlord laws may look great in some other states, you'll may also be missing out on all the fabulous appreciation that can be experienced here in California.

I had completed the inspection and put up the deposit so i'm into the deal already for $1500.

As a landlord in California, do I have to return the tenant's security deposit within 21 days if the tenant broke their lease?

Most buyers want their deposits account to be close to where they live.

If pest control is needed, the landlord at their discretion will order pest control and bill the tenant for the services or take the cost out of their security deposit.

@Robert Howard, to reiterate what @John Leavelle wrote, the "recent sales in area" might NOT be comps at all (ie. not SAME neighborhood; not SAME square footage; not SAME type of property), so averaging out THEIR sale price isn't the answer (unless they ARE valid "comps").What John is inferring about buying ARV-condition properties is that you'll likely have to save your OWN deposit for them - EVERY time (rather than be expecting to refi in 6 months to get your deposit back to Brrrr), because you won't be adding extra equity to them!

... meaning it looks like he may have given incentives like no deposit required to some tenants in order to raise the perceived value of the property.