After a certain renter moved out, I checked the mess that they left behind - and the damage. He wrote requesting his damage deposit back. I wrote him back that I had been in that city and checked the house. I told him that I was keeping the damage deposit as partial payment for the damage and then told him to send me an equal amount to the original deposit and we'd call the matter square, even though I was still coming out on the short end.
I knew that he wouldn't send any more money, but he also didn't ask again for the damage deposit.
We lived too far from that city to keep watch on the tenants, so we sold the house as soon as the damage was repaired.
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