If he stayed, you could run good tenants out or attract more illegal activity, neither is good for you as the landlord.I would only take money from the security deposit to remedy actual damage which could include odors if there are any.

This is what we have decided for the scope of work on the rehab:Professional mold remediation with basement clean-up ($4600)Conversion of the family room on the 1st level to a 4th bedroom. ???

Our remedies too are supported by landlord-tenant law.

Otherwise barring other quirks in the contract you should get your earnest money deposit back.A well written contract should have a defaults and remedies clause.

If you do a search of removing ripoff report on Google all kinds of remedies come up, I won't bore u with all the suggestions.

Remedies A violation of any provision of this Chapter constitutes an unfair trade practice under G.S. 75-1.1.

Remedy Investments, LLC

You will find a lot of false information on the Internet because a lot of companies that do drywall remediation you scare tactics so they can charge very high prices.  

But, you must adhere to reasonable standards when remedying the situation.  

With drywall, to do proper mold remediation you need to replace it.