2 week Stay, Some Broken Items, and Smoking - Refund Security?

[Frank Kosiba]

Good afternoon BP Community. Hoping to get a few second opinions on a situation where we my wife and I had a 2 week renter and we're weighing the options regarding full/partial/zero refund of security deposit. 

We rented to a woman and her family/in law members for 2 weeks, a total of about $6k. We took a $250 security deposit (I'm aware that's low). We had her accept and sign out T&C's, which include a specific dollar amount for things like not filling up the propane tanks, leaving a dirty grill etc. Here's what happened:

- She notified us that a (brand new, $50) chair cover had started to rip in two places. My sense was this was due to neglect.

- She was able to get into the garage fine initially, then had her son help her the second time and they broke the lock. I called in a favor to a local family friend that promptly came over and fixed it.

- They tore a hole in a yet-to-be-used custom Whale pillow, but didn't tell us. Our cleaning crew showed us. 

- They chipped a 3"x3" area of paint off of a stair case pole, they told us it was already starting to chip. I know it wasn't because I had just sanded, primed, and painted it myself.

- They left the grill dirty and open so that it was rained into and got soaked. We have listed that we charge $25 for a dirty grill.

- We saw one of the family members smoking on the front steps. Our cleaning crew saw her smoking in the back yard. Our policies clearly state no smoking inside the home or on the property; she accepted these terms. 

Thoughts on how to handle the return of the security deposit? I understand it may cost us a negative review but so goes it. I'd really like to give back part of it, but we incurred some hard material and labor costs due to their negligence. 

Unfortunately we weren't able to replace the chair cover as we had back to back guests arriving 5 hrs later and ordered it from Wayfair. 

Thank you in advance, 

Frank