I did offer shorter closings and a higher earnest deposit which I think is a great way to put you ahead of other financed offers (<--pro-tip) but this comes with slightly greater risk and I'd only advise if you have strong and almost guaranteed financing in place. 

I subtract it from the deposit if I select them as a tenant otherwise I don’t do anything.

* What do you do to ensure that the tenant is responsible for security deposit disputes since that is the largest reason for owner lawsuits* How familiar are you with the newly changed laws that can affect you the owner if they are not used correctly?

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.

I have my first propsective tenant who has put down a deposit to hold along with his application.

On the high end, I'd charge first and last month's rent up front and 1.5X rent for security deposit.

It sucks, but it's possible that the rational thing to do is let her stay.... and keep 100% of the security deposit when she leaves. 

Investor money (downpayment) came from a paypal software engineer and ceo of a china based pharmaceutical company. while in rehab (super ugly at the time), I rented each unit out for 2800 starting in January and collected first months rent and deposits for a cool 8400/month for the entire building.

If you need me to do math to show why 20% down is better financing on a primary residence than 3.5% or 5% down, I'll happily oblige.Within two weeks of going into escrow on the new purchase, find tenants and get them to sign a lease and make a security deposit.

To ask for first, last month rent, and security deposit of $2000 seems too much ($6000) for people renting a home.