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replace carpet?

When I moved in to this apt. 1 year ago the carpets were old and dirty I had even put that on my move in check list sheet, that was signed by a manager. I did pay a $300 non refundable pet deposit and a security dep.. After moving out, I received a letter saying that they used my security deposit for pet damages to the carpet and I owe $600 on top of that. I did right an objection letter back stating that the carpet was already in bad condition and if anything I left it looking better than it was before I moved in. They still want me to pay for the new carpet, what should I do now? Small Claims Court?

The only option you have is to sue the landlord in court.
The land lord could not charge you for new carpet--only a pro-rated amount for the "remaining life" left in the carpet that was in your unit.  If you lived there 1 year and the carpet was brand-new when you moved in (I know it wasn't, but just for example), then he could only charge you the amount of the "remaining life" left in the carpet.  I believe a carpet is depreciated in a rental after 7 or maybe 10 years.   SO, if this carpet was really old (and he would have to prove the age of the carpets) all he could possibly charge you would be for perhaps cleaning it, not replacing it.  Sue him in small claims court.
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