Tenants moved out and let someone else move i n

[Raquel D.]

Hi everyone,

I have a 4plex in Bloomington, and I was recently told that a tenant moved out without notice and let a friend or family member move in.  Old tenant is asking me about their security deposit; new resident wants to sign a lease with me.  I could really use some guidance/insight on how to navigate this!  I recently got this building so I inherited the tenant and I don't have a set process for tenant screening yet.

For the security deposit - how much do I need to refund in consideration of the following?

• The lease provides a specific 60 day notice period to terminate a lease, which obviously wasn't followed.  
• For damage, I don't know what the damage of the unit is yet, although there were scuffs all over the living room walls when I recently replaced a wall unit AC.  I also know the old tenant painted because they told me - I haven't seen what they painted yet.
• I did not have a period of nonpayment since the person they let move in paid this month.
  

Regarding the new residents, they are a very young couple with an infant.  

• I told them if they passed the typical screening process, then we could proceed with signing a lease.
• They tried to fill out a Cozy application but it didn't go through - they think because they have no credit.  (I asked them to fill out only the background check portion instead - waiting on it to be returned).
• They indicated they are okay with with security deposit and rent I specified, and with the terms of a 1 year lease. 

Besides the background check and last 2 pay stubs, what other items do you recommend I request?  

If anyone has any suggested forms, I would be really grateful, too - I was planning on handling this as it came up, but having a tenant unexpectedly move out and swap with someone was a big surprise.

In the future, I probably wouldn't consider a tenant with no credit.  But they're already living there and we're in the midst of a pandemic, so I'd like to make it work, rather than forcing them to move out, as long as nothing else that's a total dealbreaker comes up.

Any tips and suggestions are appreciated.  Thanks so much!