Is there particular/formal documentation we need to provide regarding the transfer of security deposits, rents, agreements, etc?

There is a cover letter that states:"Attached is  the  security deposit statement.

If you feel that the overall mix of security and income production of a rental property will outperform what your IRA is generating today in conventional assets, then it is a good move. 

Ours all want good sized shower stalls with glass doors, stainless appliances, coffee stations, a pantry, solid entry doors & opt for security systems with WiFi cameras.

The "owner" at the time claimed that he no longer has the security deposits because the tenants were behind on their rent payments.

The purpose of this is for security.

I continue to buy properties that meet my investing criteria (harder to find than a few years ago, but there are still some out there) and I have been working on securing access to capital to be able to buy more assets when the prices drop. 

The lender tracks this information because they want to ensure that their underlying security is insured and they will be informed when you change the named insured.

Secure an option to buy the property later, but lock in the purchase price now.Happy InvestingDerek Dombeck

The primary advantage for most is the psychological security that comes with believing it will better protect your assets.