So you need to show them that you are ready to hit the ground running and close.Particularly in a market like this one where, in major MSAs, people are going hard with their deposits on day one and closing in 30 days with no financing contingencies.  

My tenants lived in the home for just 11 months. (Thank God)  While preparing for us to move back in as the primary residents, we scheduled to have the floors of the entire home redone with wood.  So we told them not ...

They hold the funds, sign every document, issue checks for expenses and receive deposits. 

From the Renter I would get first month’s, last month’s and deposit.

I don't know if a spouse would be treated any different for the situation you described.In general we force each spouse to submit an application, and we have asked for additional deposits or denied based on poor credit from one or the other.IF someone falsified an application, and I could prove it, then for us it would be an automatic disqualification, and we would encourage our tenant to move out, or at the very least not allow the other person to move in.  

In the event of buyers default, the deposit shall be the sole remedy.He urges to never sign a contract without those clauses, it saves you if you can't find a buyer and need out.

@Hattie DizmondLLCs and corporations are my bread and butter and the reason I say that lawyers here in Dallas hire me to do an investigation into LLCs they are suing, and I see it all the time and when I starting tearing the LLC apart I find a lot of fraud on the behalf of the owner of the LLC and then the truth come out when a deposition under oath is given.Joe Gore

I am assuming the re-stain is just part of the normal aging and I cannot take their deposit to pay for it correct?

What is the best way to establish a rate to charge security deposit for repairs such as drywall patching and repainting if I do the work myself.

Maybe have a security deposit and possibly give back a portion of the option consideration like cash for keys if they move out with the place in good shape.