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.

If they don’t pay it will come out of the security deposit.

Did they post a security deposit with the current owner? 

She already put down a $4k deposit.

Hopefully, they don't go bankrupt lol - In order to get started with the process, I have to pay $1000 deposit.

Not sure if this belongs here or in Legal, but anyway....I mailed out a returned security deposit (via certified mail), but the former tenant never picked it up/signed for it so it was returned to me. 

Deposit or renter insurance requirements comparison.  

You can also just work with a lender that does not season and source deposits and that will pretty much clear up your situation. 

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

At this point, they'd only sent me 3 properties and I realized it might not work so I requested we stop and honestly thought it would be a really reasonable request to return the 20k deposit/finders fee.