Security deposit fees for excessive people living in unit

[Ken D.]

I'm taking back control of several properties which I formerly had someone (poorly) managing for me. In one of them, I have a tenant whose lease is up for renewal, and I'm planning on not renewing the lease because he has 3 additional adults living in his unit beyond what is on the lease. He's been living there for 3 years, and my water bill has been consistently very high that entire time. I pay $250/month for a 2-unit property, which is the same as what I pay at another 4-unit property I own (this includes, trash).

My question is, can I deduct monies from his security deposit because of the lease violation or the excessive water usage caused by excessive people living in the unit?

My understanding is I could evict him for having too many people, and that if I evicted him I'd be able to keep his security deposit, but I don't want to go through that process.