I started doing this by saying things like this:"Tell me Prospect, if I come down to show you this property and it meets all of your general criteria, are you prepared to sign a contract, put down a deposit and make your first month's payment TODAY?"

If you are the high anxiety type consider a lawyer, but if you are willing to put up with the headache you can probably do it yourself(Pro se) If you lose then hire a lawyer and do it again, you can usually do that if you lose because of a technicality like proper notice, service etc.

While, I will lose $170 in late rent from last month his security deposit will cover this month and it was his last month on the lease anyway.But my question is, In this apartment he paid his own utilities... and I'm going to go out on a limb and say he hasn't paid February's bill yet.

They (homepath) are not as friendly to investors regarding inspections and I've heard they will keep your deposit for almost any reason if the deal doesn't actually close.

Scotty,I would do a walk through and if there are items the need to be done that would affect getting their deposit or part of their deposit back, you could let them know if they help you with a renter by them showing the home you will give them their entire deposit back.If you have a good relationship with the current tenant you may not have to make that offer, speak to them and see where you are at.How long do you plan on keeping the rental property?

Make sure you pay all of your taxes(biz & personal), make timely federal deposits and file timely because if the IRS gets wind the attorney is the third party and won't be liable unless they're an officer in either your company or one of the charitable orgs....

A few other things were fixed.After the concession, prorated rents for April and security deposits(which I'm setting up a separate account for):I only had to bring $13k and change to closing.Property ManagementI feel really good about the lady who runs the PM Company in place.

When do I initiate escrow so the funds can be deposited for "Safe Keeping" until closing???

Out here that takes the form of a Certificate of Deposit.

I have heard both schools of thought, just wanted to hear peoples views on deposits from buyers?