Move in Move out fee v. security deposit

[Kenneth Garrett]

I am looking at a 4 flat where the seller does not have any security deposits.  Instead he collects a move-in fee and move out fee.  Anybody familiar with this method/  I understand the fact its a fee versus a refundable deposit.  I would like to hear the advantage and disadvantage of the fees v deposit.     

[Mark Ainley]

We collect move in fee of $500 when we provide appliances and $250 when we have tenants provide.  Legally you can only collect up to 50% of the lease rent otherwise can be deemed as a security deposit.  We stay away from security deposit.