Tenant lease ending, not paying rent in-lieu of security

[Purak Parmar]

Hi everyone. I have a situation that’s never come up in my rentals. I have a tenant, no issues for the past lease term. When we signed the lease I took a double deposit +$800 due to poor credit and some other red flags and they were fine with it. The tenant lease is ending in two months and they have said to just keep the deposit +$$ in-lieu of their final two payments. Is there a form of some sort I should use to outline this so they don’t come back and ask for the deposit? Or should I keep collecting rent as normal and deal with the deposit as normal. There is no damage to the property and they have been decent tenant for the most part (couple of late payments, but they paid the fees associated). My major concern is if they hold over after the term, or expect deposit money back later. Any advice is appreciated. Thanks