I see a chance to make some cash flow on this property my concern is having utilities in my name, and resale value if I leave them as is.  

My property manager was a month late sending the rent and after calling and leaving several messages, I fired him fearing he would get another month of rent without paying me. 

I will be renting out the master bedroom for $800 a month so that would leave me with $1289 out of pocket.

I have the home listed for 157k that covers what’s owed and what the owner wants...yea which doesn’t leave nothing for me.

Most tenants I have average a 3-5 year tenancy, some have been with me since the beginning and may never leave.  

Just let them know that they need to get dimmer-compatible bulbs - or just leave the dimmer at full!

I know that the cashed check would serve as proof that he received it, but I can't ignore the possibility that he will disagree with the deductions and refuse to cash the check, leaving me exposed to a lawsuit for failure to return the deposit timely.What advice can you offer on what my next course of action should be?

It's a cash cow on a 15 year note with a great interest rate so we'd really like to leave it alone if possible.

Check the lease in detail to see if there's any clause saying you can give them notice to leave if the property is sold. 

Did they need more of a wake-up call that sooner or later they would have to leave?