Tell him that the deposit can not be used for the last month's rent, it is a security deposit. 

My guess is that you would still need some type of license, either in mortgage lending or securities.  

Offer different unit, explain costs of moving out (new security deposit, hiring moving co, cleaning costs, new furniture) 90 days before end of their leaseSend marketing packages or gift packages to preferred employers surrounding property Reach out to old leads older than 90 days

Would adding security cameras add value?

If the tenant breaks it, the tenant's insurance pays for it at the time it happens (not from the security deposit).  

When people are short on cash , they usually secure a small local partner for liquidity and then private lenders for the bulk of the deal.

Some repair works needed are as follow which I am not sure if I should deduct from security deposit.

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 was thinking of a secure drop box but unsure.

Due to the low inventory it allows the conversation to be had to get a rent back for free (I have had clients do that just recently, only had a $1,500 security deposit for a $1.2M house), or renting back at the PITI for the new buyers.