Where I live (Ontario, Canada) security deposits are illegal. Simplifies everything and levels the playing field. Key deposits are also illegal. Only thing a landlord can charge is rent (first and last up front) and its legally required to pay interest on the last month's rent (although good luck milking that from most landlords). No need for escrow since to get your last month's rent back you just don't pay your last month.

There are, of course, landlords who do not follow the law. As with drug dealers, pimps, and phone companies they generally prey on the less fortunate. Legal aid and the landlord-tenant tribunals keep busy.

Weird, here in Switzerland it's the same but opposite - As a tenant, I have to transfer my security deposit to an account with my own bank and give my bank the permission to tell my landlord which account and how much is in it.