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Jeez. Why the hell are landlords asking for a downpayment on a home they are leasing?
Silly, that's a down payment for the next house to turn into a rental.
Because some tenants will just stop paying and refuse to leave. Some will trash the place and sell everything they can pry off and either disappear or just move on. Trying to go after them is a long legal battle and the end result can be that they have no money and you'll get nothing.
Security deposits are security deposits. 12 months sounds crazy though. That really is enough for a downpayment in many places.
cause they can, and it's a good source for an interest free loan. i mean who would pass on the opportunity to get an interest free loan where you can arbitrarily deduct the amount you owe?