Security Deposit Withholding?

[Sean McMannis]

I have tenants moving out this week.  I've been in and out of the unit over the last couple of weeks and noticed that there is an area of the vinyl flooring that is bubbling, presumably due to water (the spot is in the dining area right next to the kitchen).  The flooring is probably 15 years old, but was in good shape prior to this tenant moving in and was noted in the move-in check list.  I'm planning to sell the unit next month to trade up and probably will not replace the flooring, but it is damaged.  Here's the question...should I withhold some of their security deposit?  And, if so, how do I calculate the amount?  Obviously, I'm not going to charge them for entirely new floor, but what is fair?

Thanks!