Do I have any reason to return the security deposit / any defense if I choose not to?

@Alex Nicholson, do you require a deposit on your listing?

(Included in my HOA dues)*2 year deal - at the end of 12 months, rent goes to $1,900.   1st month+  $2100 security deposit.  

As long as you haven't taken a deposit from them you have no obligation to them.

You will most likely have to put some sort of Earnest Money Deposit but it is refundable if you kill the deal within your contingency window, so time is of the essence. 

Was the security deposit handled correctly at closing?

Should have kept his security deposit.

You can get detailed agreements and try to enforce via a security deposit.

hey everyone I recently purchased a 4 unit building in Indiana and one tenant moved out two days after I closed on the property. this individual has a one year lease and only stayed 4 months before leaving. i am fine with them leaving but am I obligated to give him his security deposit back?

I know I need to give him back his security deposit minus any repairs within 21 days after he leaves, but is there anything else I need to beware of?