Pet Deposit Refund with lease renewal

[Raj Swarnam]

Hi , I Just bought my First Investment property with tenants in place. Current tenants are willing to sign a new 1 yrs lease starting sep 1st. They had a pet (Cat) last year 2014-2015 and not anymore .Tenant request the pet deposit refunded before they sign the new lease .  Should i entertain this request ,inspect the property for any pet damages and refund the pet deposit or hang on one more year till the new lease ends ? please advise