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Our renters informed us of mildew/mold growing in the corner ceiling of the bathroom. We immediately had a roofing company come out and inspect the roof for leaks however they did not  find any leaks in the roof not did they see any visible water damage to the bathroom walls and said  the mildew/mold area might just be the result of too much moisture in the bathroom (poor ventilation issue). We then had a mold company come out and they pretty much said the same thing… that the mold developing in the ceiling is likely the result of poor ventilation and that this happens when the bathroom ceiling fan is not used or working properly.  We asked if there is any other possible reason for mold growing like this if there are no water leaks in the pipes or in the roof and they said, "No".  We asked the tenants if they use the fan when showering and they of course said, "yes" however we're not sure if they're being completely honest with us (the mold company pointed out that everyone always says "yes", when asked if they use the fan when showering). Given this, we feel that the mold damage could have been avoided if the tenant had been properly keeping the bathroom ventilated during and after showers (there is an entire page in the lease agreement dedicated to preventing mold growth and damage). The estimate the mold removal company gave me to remove the mold was close to $3,500.   My question is, is it fair (and legal) to keep the deposit to help cover the costs related to mold damage/mold removal? If so, will it be hard to prove negligence on their part if they challenge or decision?

You would need proof that the mold was caused due to tenant negligence. Maybe a before picture of the house while the fan was used and an after.

Thank you for the reply. I know the mold had only developed in the last few months because I had the house painted right before they moved in. Plus, these tenants took meticulous notes when they did the walk-through (they noted things liked discolored brass door handles, etc) but did not say anything about mold in the bathroom ceiling. Knowing these tenants, if mold was present they would have never moved in.  Anyway, thank you for responding to my question.

I think before & after pictures AND the landlord/tenant pre-movein walk-through are your saving graces...  I would  definitely keep the  deposit, and actually document the mold job costs in their security  deposit letter.  If it goes to court, you document  the costs over and above the security deposit in addition to any  other over & above costs you incurred.