My question involves landlord-tenant law in the State of: Idaho

My lawyer tenant gave notice to vacate on 8/31/2015 (gave 30 days notice as required). Per the terms of the lease, rent is due on the first of each month with a 5 day grace period. When rent was not received by the 5th, a late notice was sent. She said she mailed it on the 3rd. It was received on 8/7/2015 and was postmarked the 5th. Check was deposited and was later returned for insufficient funds. Tenant claimed her purse was stolen and that she had to close the account. I was a commercial banker for 27 years, and if that was the case the check would have been returned "account closed". I sent a late fee letter and told her that a letter from her bank confirming the handling of the account by the bank for potentially stolen checks, would suffice. The letter was never provided and the tenant became extremely contentious at that point in time, demanding a full refund on her security deposit to be handed over on 9/1/2015 (move out day 8/31). I told her that was unreasonable and the lease provides 30 days to refund, also citing Idaho statute of 21 days unless 30 days stipulated in the lease. She said she is aware of "case law" that supports her position, however, she would wait the 21 days. Still no letter from the bank.

After her vacating, I performed a walk through and sent a brief email outlining several areas of damage and invited the tenant to walk through prior to the work being done. She said all the things I mentioned were either wear and tear or already present and attached her original checklist (I already had a copy) and a copy of the Idaho Statute regarding security deposits (I already had that too). She declined the walk through, stating in short, that she had no time to "assist me" and felt she would spend all her time, what little of it she had, helping me out. She said she would await my accounting and security deposit refund and would "proceed accordingly".

The house required many hours of cleaning, though it was apparent that she had made an attempt. It was not nearly as clean as when she rented it. All the wood blinds (14) had to be wet cleaned. They had caked on dirt that would not budge. The carpet had to be completely replaced and the sub-floor sealed due to dog urine and a stain from a plant pot, along with two large sections of rectangular discoloration that the carpet installer said was from area rugs laid on top which had bled into the carpet. The garbage disposal had a plastic object jammed in it. Six sections of wall in four different rooms had been defaced with exterior wood fence stain. Though she signed a no-smoking clause in the lease, there was a great deal of nicotine in the master bathroom. It was dripping off the shower rods, toilet tank and has stained the doors and wood blinds. The exhaust fan was disgusting with it.

My concern is that since she is already angry about the late fees (which she has not paid) and the threats of "proceeding" that no matter how liberal I am in refunding, she will take me to court anyway. She has sent emails complaining of certain things, twisting it to make her the victim. However, in all cases I have supporting documentation and/or statements from others which contradict her statements.

Do you have any advice? Should I just refund the whole thing and forget it and also forget about the late fees? Should I take my chances and go to court? I would have to hire an attorney.

So torn over what to do. My first thought is to charge for the sealing, repainting, and perimeter weeding and eat the rest, even the 25 hours I've put into cleaning it.

Thanks for any help you might be able to give.