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Using last months rent to pay for Damages

I had tenants that moved out last week at the end of a 6 month lease. They were not required to give me notice but had verbally said they were staying another month and then they left anyways. I am currently in posession of a 300 dollar deposit and their last months rent. After going into the property and inspecting it there is considerable damage including carpet that will have to be replaced. The damage is significanlty more then the deposit, can I use the last months rent to pay for damages and then just return whatever is left?
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You must detail all your expenses allowed by law or under the lease, deduct them from the deposit. If there is a balance owed you could send them a notice giving them the balance owed.
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