She already put down a $4k deposit.

We're offering $500 off the first month and, in some cases against my better judgement, allowing tenants to pay security deposit over the first 3-4 months.It's a pickle for tenants because it takes 30-45 days to get their previous deposit back, if they do.

We embrace S8 applicants, but screen them just like any other applicant.Many have an entitlement mentality and try to leverage their S8 voucher by pretending to be helpless:1) A percentage won't apply because they expect a landlord to waive application fees for them.2) Many cry broke and expect a landlord NOT to charge them a security deposit.3) Many of those same S8 tenants trying to avoid paying a security deposit, won't make an effort to call the list of nonprofits we send them that will pay their security deposit if they apply.4) A lot of them try to avoid paying for utilities.

To your case specifically, it would collect both your rent, and your utilities,  and deposit the money into your checking account.  

Quote from @Maya Jones: You should get something agreed upon for the tenants living and the remaining rent/security deposit if there is something changing from the existing lease. 

Did they post a security deposit with the current owner? 

We gave him 56k in deposits and he will not even pick up his phone or engage in a conversation.

If you do offer the first month's rent 'free', I'd take an additional month's rent as security deposit. 

This includes offering incentives, lowering the rate and offering flexible security deposit alternatives.

They take on a job and get a deposit.