It’s actually a bit risky to keep a deposit. If the tenant says you’ve done so unjustly, and a court agrees, the LL can be sued for triple what they kept. I have an owner occupied two unit and it would really need to be a lot of damage with evidence of intent or negligence. Why risk keeping a deposit and then being sued for triple while still having to carry out repairs caused by a careless tenant or their animal.

My place doesn’t make me any money, it’s a loss every year, but at least I’m building equity right?