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month to month security deposit issues

I rented 2 rooms in my house out and my tenet and kids. She told me on May 10th that this was there last month. We did not sign a lease since she was a friend but had a verbal agreement on a 30 day notice. Now its June 2nd she wants her deposit back but I still haven't found renters and there were lots of damages to the property that need to be fixed. Can I keep the deposit since she didn't give me 30 day notice or how much am I obligated to refund?

I was just reading an article on this.  lol that article should help you out as it did me. NEVER RENT TO FRIENDS!!!! lol I am learning this the hard way! I care too much or you lose a good friend in the mix! GOOD LUCK!!!
The fact that you haven't found new renters is not relevant to this situation.  As far as I can tell,  you can keep the deposit to pay for rent until June 9 (30 days after she gave notice), plus damages.  Refund the rest.  Expect to lose her friendship.
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