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retaining security deposit

May a landlord retain a tenant's security deposit if: The landlord gave a 60-day notice to vacate because a family member wanted the unit The tenant moved out on the 59th day but failed to give the landlord a 60 day notice or respond to the landlord's notice to vacate.  The unit is in better condition than when tenant leased the property and would otherwise receive a full refund of the security deposit.

You gave the notice and they followed it.  Why would they need to give a 60 day notice back?  You should have followed up with them to make sure they'd be out by the date on your notice.  I don't see any cause for you to keep the deposit.
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