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Security Deposit Return

Our tenants just moved out of our rental home and we've begun the process of accessing damage. We've found several things that warrant a deduction off the security deposit. However, when the property was leased to them we failed to have them complete a checklist acknowledging the current condition of the premiss. Without the ability to "prove" that any damage was caused by the tenant are we legally required to return the full deposit to them?   If I read the Washington State law correctly they could have grounds to sue based on the fact that a checklist was not provided at the signing of the lease. I'm thinking returning the full $300 would be much cheaper that less of a headache than going to court. Any advice here would be appreciated. Thank You.
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