NJ Security Deposit - Can tenant demand on day of move-out?

[Sandy S.]

Just received notice that my tenant will be moving out of a rental property. Its been almost 10 years since I’ve had a tenant move, so need a bit of a refresher/guidance.

Is a move-out inspection is necessary to do with the tenant there? Or is an inspection typically done after the tenant has moved out?

I offered to do a move-out inspection with the tenant present, but now they are coming back and saying that they are expecting the full security deposit as contingency to a move-out inspection on the day they leave.  They cite there is no reason to withhold the deposit.

I do believe in this tenant's care of the property (I visited a few months ago when we were doing general repairs), and I don't doubt that I will give them all their security deposit back.  However, NJ law states that the landlord has up to 30 days to refund the amount, so I should be able to exercise that right. I don't think the tenant should be entitled to their thinking, correct?  What would you do?