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pets and security deposit

I have a tenant who originally signed a 1 year lease.  When that lease was up she did not sign another one so she is paying month to month.  In the original 1 year lease no pets were allowed.  She has lived there for 4 years without a lease. During that 4 years she had 2 dogs in the home which she should not have had.  She is moving and has not paid rent for this month which was due the 1st. She said that I could use her security deposit for this month's rent.  My question is does the original lease she signed which stated no pets allowed continue to be binding?  If so, the security deposit would go towards the pets and she would still owe me for the rent for this month.  I know I would do a walk thru after she moves and that is normally when security deposit is returned if there is no damages to the property. But the rent is due on the 1st and she is not moving until the 1st of the next month.  Does she still owe for the rent & the deposit go towards the pets? I live in Alabama.
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First off, I never permit a tenant to use a security deposit for the last months rent. Unless the dogs have caused damage above normal wear and tear; the security deposit cannot really be used for that. In Alabama, I beleive you have 35 days to return the security deposit OR a statement of deductions along with any of the balance of the security deposit. If your tenant has not paid rent when they are supposed to and you may apply the security to rents owed as well as any damages to the rental unit. Just make sure you send your tenant the accounting within 35 days.
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