Since they are on the hook until May, should I just use their security deposit to get house into renting shape?

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.  

When studying the market rate I would focus on floor plans (match the square ft of recent rentals if possible). 

That being said, I think you can find great tenants in any area and any demographic if you focus on matching the right people with the right home.

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. 

I tend to lean toward that there's more of a investment 'style' match that seem to work best, meaning not every property manager might be great for every investor and stylistically its best to interview a few. 

If you just enlisted and you are not yet getting the 5% match from the DoD in your TSP you should be walking to your finance office right now to set this up.