Tenants wanting to keep security deposit for last months rent?

[Gabe G.]

What does everybody do on tenants that insist on using the security deposit for the last months rent of the lease?

I have some tenants that are moving out of state, and while I am happy for them. They are moving out on December 4th, lease ends on January 1st. Last rent payment is due on December 1st. They want to use the security deposit for the December 1st payment.

Contractually, this is obviously in violation of the lease. They have been decent tenants, and I don't expect the place trashed, however, anything can happen.

I really only have two options

1. Hold to the contract, and say rent is due on December 1st, and security deposit will be returned after move out. If they don't pay then proceed with eviction.

2.  Schedule a walk through close to the time, they are moving out, and ensure there are no huge issues that I would be taking out of the security deposit and if not hold the security deposit for the last month.

Thoughts?