Hello, I was wondering if someone experience handling the security deposit before the tenancy ended.

I see other landlords around me in low ball battles, practically giving their properties away, 1 month free, no deposit, etc and I raise my rents every property based on having a newly rehabbed and updated property, and I may not get as many calls, but the calls I get are the ones who want to pay a little more for a better property. 

We partnered to attain private funds for the deposit in the hard$.

Would also tie in deposit to cover at least first year of the extra payments just in case they break lease early.

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

(a) This chapter does not apply to:(1) A person not licensed under this chapter who performs any of the acts described in § 17-42-103(10) as:(A) An owner of an individual freehold or leasehold interest in real estate;(B) In the case of a corporation, limited liability company, limited partnership or other entity recognized by law holding a freehold or leasehold interest in the real estate under subdivision (a)(1)(A) of this section, a member, manager, partner, or officer who has authority to make management decisions affecting the overall policy of the entity regarding real estate activities involving only the interest of the owner;(C) An individual attempting to acquire for his or her own use a freehold or leasehold interest in real estate; or(D) In the case of a corporation, limited liability company, limited partnership, or other entity recognized by law intending to acquire a freehold or leasehold interest in real estate under subdivision (a)(1)(C) of this section, a member, manager, partner, or officer who has authority to make management decisions affecting the overall policy of the entity;(2) An attorney in fact under a duly executed and recorded power of attorney from the owner or lessor authorizing the final consummation by performance of any contract for the sale, lease, or exchange of real estate, provided that the attorney in fact does not receive or have an expectation of receiving a fee, commission, or other consideration, directly or indirectly, for performing the act;(3) An attorney at law in the performance of his or her duties as an attorney at law;(4) A person acting as a receiver, trustee in bankruptcy, administrator, executor, or guardian, or while acting under a court order or under the authority of a will or of a trust instrument;(5) A person acting as a resident manager when the resident manager resides on the premises and is engaged in the leasing of real property in connection with his or her employment;(6) A person employed only at a salaried or hourly rate to engage in the leasing of real property for or on behalf of a licensed principal broker, the real estate firm of a licensed principal broker, or an owner of real estate, if the person:(A) Does not engage in or offer to perform any practice, act, or operation set forth in § 17-42-103(10) other than receiving a security deposit or payment as permitted by subdivision (a)(6)(B)(iii) of this section; and(B) Performs only one (1) or more of the following functions:(i) Delivering a lease application, lease, or an amendment to a lease application or lease to any person;(ii) Receiving a lease application, lease, or an amendment to a lease application for delivery to the principal broker, real estate firm, or owner;(iii) Receiving a security deposit, rental payment, or any related payment for delivery to and made payable to the principal broker, real estate firm, or owner;(iv) Acting under the direct written instructions of the principal broker, real estate firm, or owner:(a) Showing a rental unit to any person; or(b) Assisting in the execution of a preprinted lease or rental agreement containing terms established by the principal broker, real estate firm, or owner; or(v) Conveying information prepared by the principal broker, real estate firm, or owner about a lease application, lease, the status of a security deposit, or the payment of rent to or from any person;(7) An officer or employee of a federal agency or state government, or any political subdivision, in the performance or conduct of his or her official duties;(8) A multiple listing service wholly owned by a nonprofit organization or association of real estate licensees;(9) An officer of a corporation, a member or manager of a limited liability company, a partner of a partnership, or the equivalent of an officer of another form of business entity acting with respect to real property owned or leased by the entity or an affiliated entity under common ownership or in connection with the proposed purchase, sale, rental, or leasing of real property by the entity or affiliate if the acts are not performed by the officer, member, or partner for or in expectation of a commission or other compensation resulting solely from a successful transaction; or(10) A person employed primarily at a salaried or hourly rate by a corporation, limited liability company, partnership, or other business entity acting with respect to real property owned or leased by the entity or an affiliated entity under common ownership or in connection with the proposed purchase, sale, rental, or leasing of real property by the entity or affiliate if the:(A) Acts are not performed by the employee for or in expectation of a commission or other compensation resulting solely from a successful transaction;(B) Primary business activity of both the entity and affiliated entity is not ownership or acquisition of real estate; and(C) Employee is not providing real estate services to or on behalf of more than one (1) entity not affiliated by common ownership.

his security deposit will cover the damages, but it doesn't look like he will be getting much back.

Any recommendations on the deposit/cleaning topic?

The lease had a higher than market rent rate and a security deposit, which was debited from seller funds at COE.

He will agree to give you a small but reasonable deposit and agree to a reasonable rent and future purchase price.