Lease fee vs security dep

[John Brice]

Does anyone here use an application process (with fee) and a lease signing fee as opposed to collecting a security deposit? Just weighing some ideas, not really sure I am a fan of security deposit. 

[Andy Webb]

Think of the Security Deposit as incentive for the tenant to perform.  "If I keep the property in good shape and follow the lease, I can get that $NNNN security deposit back".  If you do a lease fee, that is one and done - where is the incentive to perform?