I had a 6 month lease on a house. We paid a Security deposit. When we signed our lease, we did not have a pet and only got one a few weeks before moving out. We spoke to the landlord two days before our lease was up to schedule a final walk through and she informed us that "the neighbor had seen a cat in the window therefore she was going to keep $350 out of our security deposit." Is this allowed? She faxed us a letter stating the same today. We left the house in immaculate condition and have pictures and witnesses to prove it. In her faxed letter she does not make any claims for damage, just the $350 for the cat because she said a neighbor saw it. I don't think the cat ever got into the windows, but I do believe the neighbor saw me with the pet carrier when we moved out. Anyway, can she keep money from our security deposit at this point? If someone saw the cat prior to our moving day, wouldn't she be required to notify us at that time and ask us to "cease and desist"? Wouldn't she be required to treat it as a breach and could she then ask for a pet deposit at that point? I know I have to reply to her within 15 days to dispute, but I don't want to bother with it if she is legally allowed to keep part of my security deposit as a "pet deposit".

Thanks!

It is good that you have pictures. Keep 'em. What does your lease say? Does it state that she has a right to impose a monetary penalty on you if you breach the lease by bringing in a pet? Does it state that she has right to a pet deposit? That should be your guide.