Tenant breaks pet least (security deposit)

[Tim Jahnke]

Tenant signed lease (No pets, No smoking) They moved in with 2 cats and 2 dogs. The place reeks to cat urine. So I fined them $100 and raise the rent $50 per month. So they moved out. Before they left they painted the place flat white to hide smoke damage and urine smell. I re-rented it with no pets and no smoking. New tenet refused to move because of the smell. I'm out $2000 to replace older carpeting $200 in base molding $850 in lost rent $275 in unpaid water bill $60 in semi gloss paint And 80 hours of my labor -$850 security deposit Now they're threatening to take me to court for their security deposit back. What do I do now?