Security deposit refund: pissed off tenants

[Kazi R.]

I have a tenant move out recently from a 4plex that I bought last year. She left me a horrible mess! I am spending about 4k to fix up the place. She noted no defect with the unit on the move-in inspection check list (I inherited her as a tenant). I decided to keep her $600, which is way lower than what it's costing me. Now she is hopping mad! Wants to take me to court etc! How do you deal with a situation like this? She is saying that the unit was in worse shape when she moved in, but I have no way of verifying it!

How do you handle situations like this? I am almost tempted to give her the $600 back as going to court etc will not be worth my time, but at the same time I just don't want to give in!  I have not really dealt with situations like this, so any thoughts will be appreciated.