My question involves landlord-tenant law in the State of: California
Tenant recently moved out middle of the last month of their lease. They paid the last month of rent and a security deposit (equal to one month) when they signed the lease a year ago. We were able to find new tenants, so we had planned to return a prorated amount of their last month's rent to them. However, upon getting quotes for repairs to the property, the damages they caused will exceed the security deposit.
Are we obligated to return the prorated rent and pursue the excess damages in small claims court or can we apply the prorated rent to the damages not covered by the security deposit?
Thanks for your help.

