@Nick Shri get an estoppel letter from the tenants showing the lease terms, security deposit, when they pay and any verbal agreements.

We collected tenant deposits.

I spend about 20 minutes a month to deposit tenant checks using mobile app.

Unpaid rent and my repair cost easily exceeded the deposit.

The security deposit came from the remaining person so that should be fine.Thoughts?

@Trent Lee They do not get any of these their deposit and depending on the amount/type of damage you can legally take them to small claims court.

Another thing to consider: most banks will require a W9 (which requires an SSN) to open up a security deposit account for your tenant. 

If rent is 100% covered by Sec. 8 this could be for a deposit, utilities, late fee of some sort. 

If they are broken when it comes time to turnover the security deposit should cover it.

I got the money back, i wouldnt worry about it if it was a small sum, but ill say that it was almost 40K of a deposit, so thats why I did worry. lesson learned - ill be more careful with deposits for next time, but tbh theres no way i wouldve gotten this deal without a high deposit.2. because the seller didn't provide the lease agreements for the tenants, I knew i had a case.