My honest advice is to put them on an actual lease which spells out your intentions, fees, due dates, late charges, pets, smoking, etc.

At least they obeyed the "No pet" policy.

Both occupants have pets, one has a dog and birds, the other has a cat.Previous landlord had discount on utilities but I don't.

All have pets and no smell of smoke in the house.

I am a pretty new investor, with two buy and hold single family properties.I have a question about pets...we do allow pets, and we have a $500 pet deposit, $250 of which is non-refundable.I have a fantastic tenant (exceeds all qualification standards, communicates well, paid deposit and switched utilities within minutes of acceptance, etc) moving in soon, and he's asked me a question I'm just not sure how to answer.

what they look like, and any other details (pets, children, personal interests).

Do most landlords allow pets?

Yes, pets caused the odor and we had to have that treated,  so gross.I am 100% sure that he's not getting his damage deposit back, nor the non-refundable pet deposit.  

I was under the assumption that I should inherit the deposit ($1100) and the pet deposit ($800).

We currently have 1 month rent + pet deposit in our procession.