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Security Deposit

I have a tenant who moved out with 7 months remaining on his lease in Indiana.  After the deductions I can take for repairs and cleanup, do I return the balance to him or since the lease was broken, do I have a right to keep it?  I have found a new tenant, after much time interviewing and showing the property and expense of ads.  Which will be moving in immediately so, I have no problem letting prior tenant out of the remaining 7 months left on his lease.
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