1) You can sleep at night, knowing that if you wake up the next morning and decide not to be in the rental business, anymore, you know exactly who gets what so you can get OUT;
2) The guests, owners and the tax people can sleep better at night, knowing you are not using THEIR money to pay your employees or furnish your own personal cabins.
Reasons NOT to operate your overnight rental business in an ESCROW fashion (because the law in Tennessee allows it):
1) You can use the advance deposits to pay your payroll, or other office operating expenses;
2) You can use the money people think you are holding for fun things, like fancy cars, furniture, etc., etc.
What does it matter? If more people are going to make more reservations and give you more advance deposits ~ you can use that money to pay the people you owe, now.
Oh, wait... that sounds like a Ponzi scheme.