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House for Sale - Tenant ruined carpets!

After a year and half my tenant recently moved out and we decided to sell the house.  All is in good shape and she had the rugs professionally cleaned except there's red nail polish  and smears and stains all over the carpet in almost every room.    We got an estimate of approx. $2K to replace the carpet; her security deposit is $1K.  Our realtor recommended we don't replace the carpets as there are several interested parties already.  We may have to make a "carpet allowance" meaning we will take a lower selling price than advertised due to the tenant's neglect, but possibly not.  I don't think it's fair to give her deposit back when the carpets are ruined, and will cost twice as much as her deposit, regardless.  But any documented resolution will be addressed in the sale, if at all, and I don't think she's entitled to any of the sale documentation.   We don't want to put any of our cash into a house that's for sale, but believe she should have to forfeit her deposit due to the damage, particularly if the selling price is impacted, but again this is a negotiation that doesn't involve her and may not be finalized before the 21 days to return her deposit is up.  I'm in CA.  Would a letter from our Realtor stating we will provide a carpet allowance to a potential buyer be sufficient; and what follow up proof would we need?  Does anyone have any suggestions?

You can use the security deposit toward the carpet and deduct it/ use the whole thing to cover it even if you are not going to use it now. Hold it in an escrow account until you are ready to do the repairs. If you are ready to bring new tenants in and they will take the place as is get them in there but create a walkthrough checklist so that the new tenants are not held for the ruined carpets.
Continue with the proper proceedings to keep the security deposit and send a "Demand for Payment" for the remaining balance of the $1000. The tenant has no business being involved in your sale of the property. The selling of the property and the damages from the neglectful tenant are two separate cases at the moment.
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