Where Do I Stand

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Hello all,
My tennant paid a 1 and half months deposit.
My tennant has come to the end of their 6 months tenancy agreement, but asked if she could remain in the property for longer as was not ready to move out due to family problems.
Even though our agent had another potential tennant who wished to view the property I agreed in writing that she was free to reside in the property for as long as she needed it, and even though the tenancy agreement stated she must give 2 months notice (this tenancy agreement has expired) I would only require from her 1 months notice on a rolling basis.
She gave me 1 DAYs notice and promtly moved out of the property leaving the keys stating that she told my wife over the phone that she would only require the property for one more month over and above the 6 months period.
My wife strongly disputes this saying that she spoke to her 2 weeks before she moved out and she even asked her what her intentions were. The reply she got was 'I dont know'.
I have verbally told the tennant that to avoid any confusion she should have given notice in writing and it is unfortunate but I am unable to refund all the deposit as to give only 1 days notice is unacceptable. I have a mortgage to pay!!!!
The house has not been left clean and stinks of dog even though no pets were allowed. I do believe there to be dog piss on the carpet in the front room which she has tried to clean but this is still evident.
I stated on the phone to her a couple of days after she moved out that I would only be prepared to refund the half month extra deposit. She seemed ok with this, however I did not do this immediately because I felt it only right to wait until the full month had expired as in effect she was still paying for this and could move back in if she wished.
Today my wife has opended a letter from the tennant sent by recorded delivery threatening to take us to court if we fail to refund all the deposit back to her by 7 days. I am now fuming mad and have decided to keep all the deposit to pay for the months notice that she should have given, plus a new carpet for the front room, plus new locks as she has not returned all the keys. i need some guidance on this as it feels like i am in the right, but am i allowed to do this??
07/06/2007 00:00

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