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Lease renewal/inspection/damage

Our tenant's lease is going to expire on the first and we've scheduled an inspection and currently plan to renew without raising rent this time.  They've only been there 6 months, but are very poor housekeepers.  What happens if we discover damage not caused by normal use, and want to repair (stains on carpets, dings in walls, damaged blinds etc?  Should we have the renter pay for those repairs as a condition of renewed lease, i.e. itemize damage and cost using contracted services, payable with 2nd months rent (allowing time for repairs) sound reasonable?  Can we require them to clean the carpets and if the stains remain, assess a replacement cost?  I'm not sure what is reasonable.  I don't think we want to mess with the deposit which will carry over with the new lease unless we have to.   Any suggestions?  Thanks!  We're in CA.

You can't use a security deposit to make improvements, nor for fixing normal wear and tear. Most landlords come out of pocket to do any upgrades to the home. If they are poor at keeping the house in a good state, I wouldn't make any improvements or upgrades until after their tenancy ends.
Thanks Luis, my question was specific to damage NOT caused by normal wear and tear.  I don't think I want to let any damage remain until they move out since it may make things worse as time goes on.  Of course I don't know if there is any until we do our inspection, but if so, not sure how to handle the cost if they're staying.  Thanks.
Polly, regardless if they are staying or not, if there is damage, that needs attention now, caused by them beyond normal wear and tear you can pass the cost along to them. Yes, if they stay you can bill them in addition to monthly rent, or agree to a payment plan (in writing). Most leases state just that. If they do not renew, then you can still charge them and if the cost goes beyond the amount of the deposit you charge them the difference. Now, be careful in deciding, if it is a repair that is caused by there action or just the wear of the house. One thing that I do, and i borrowed this idea from a previous landlord I had, was I offer one free carpet cleaning a year. I hire a professional company to come out and just do a basic cleaning. If there is damage beyond the basic, then they are liable for that. Also, I would caution you on deciding what is a "needs repairs now" type damage, or can wait till they do move out. Hope this helps.
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