Refunding deposit to vacating tenant after buying rental

[Pete M.]

All,

Looking for a quick bit of advice. I purchased a SFR rental in Oklahoma City, and the prior landlord & PM failed to give the proper notice to the tenants to be out prior to closing. We closed anyway and the tenants moved out at the end of April as planned. They cleaned up the place well enough, but the agents walked the property afterward and said the tenants' dog destroyed the flooring in two rooms... deeply scratched and warped boards. This is a BRRRR and we planned to replace these floors anyway, but the agents recommend keeping the deposit. We have no pre-lease inspection from the seller or previous PM, so I cannot say beyond a shadow of a doubt that the floors weren't already damaged... but agent is very confident this tenant did cause the damage. This same former tenant also refused to give the keys back to the new PM after she wouldn't promise them a full refund (simply not within her power to do so, which she told them), and so she just drilled and changed the locks.

Thoughts on whether I should refund all, a portion less the cost of new locks, or keep it all (which still wouldn't cover the cost of flooring for those two rooms)? Thanks in advance.