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Increasing security deposit for lease violation

I own a rental in California and use a month-to-month rental agreement.  My new tenants have violated the terms of our agreement by smoking in the garage.  In addition to telling them to stop, can I also require them to immediately increase their security deposit by an additional $300?  This increase would still be less than twice the rent.

Just increase the rent $25/$50 dollars a month that is money you can keep and don't have to worry about showing damages.
Excellent idea, Scott.  Thank you.
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