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Tenant wants monthly pet fee removed after death of pet.

The current lease had a pet addendum with a pet deposit and a monthly pet fee. They no longer have the pet and want the monthly pet fee removed. They shorted the last rent check by the amount of the pet fee. When I questioned them about it, they replied "I forgot to tell you, we no longer have a cat". How should this be handled going forward?
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I believe it would be reasonable to remove the pet fee if there is no pet. However, I would hold onto the pet deposit until they move out in case you find pet damage that is not visible until all their belongings have been removed.
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