Even if your jurisdiction allows higher deposits/rents you are possibly setting yourself up for a lawsuit if they fall under some protected class and they can claim discrimination in housing. 

You don't have to worry about clogged toilets and lead paint lawsuits. 

Her name was on the foreclosure lawsuit.

(Expenses / outlays exceed income, FMV (your net worth) becomes lawsuit bait)David J Dachtera"Success is not a destination.

Lass action law suit filed against a builder who used that.

One thing I look at when looking to buy a property that was flipped is to go into the court records and see if there were any lawsuits against the company or individual who did the flip.  

The more headache involved with any  restriction to use your property how you'd like to use it creates friction with the association, potential fines, lawsuits, and they can even start hassling guests.   

@Ali Boone "equity stripping" is taking as much equity out to avoid lawsuits and preserve capital.

I highly recommend that you utilize a reliable source for that part as the rules by which you operate can have big ramifications if you end up in a lawsuit.

Thus, there is no risk of any law suit as I have no intentions of fighting their desires and wishes.