Okay, long story that I'll try to make a bit shorter:
My current roommate, C, and her old roommate, D, moved into our apartment 3 years ago. In January of this year, D moved out, and I moved in. We did everything the right way. D gave his 30 day written notice, I filled out the application, did the credit check, etc. Come move out/in day, the apartment manager informed us that I would only be a sub-leaser, and D's name was going to stay on the lease. In addition, I was to pay D the security deposit, instead of the property owner paying D back and then taking money from me. Fine. We did it (after D consulted with a lawyer).
Here it is 9 months later, and C has decided she is going to move back to Canada. I did not want to move (again) so I asked the landlord I could just find a new roommate. She said that was fine, but we would need to start a new lease. Here's where it gets tricky. The property owner wants me and the roommate to sign a new lease, but does not want to give C any of her deposit back. He said my new roommate needs to give C a deposit. C had a dog, which was an extra $500 for pet deposit, and the dog will be leaving with her. The owner will not refund the $500 deposit. Again, he is saying it is our responsibility to pay her the money (he basically doesn't want to take any money out of the account until we completely move out.). When I requested a walkthrough, they told me they would not be doing one. They said at the end of the lease, when we move out, they will keep a portion of the security deposit for cleaning by a licenced professional (and if we want to have it done ourselves, we have to use the company that they "approve").
There are so many problems with what is going on!! Can anybody give me advice on this one?! I don't really want to move again, and rent is so cheap for the area I live in and the apartment I'm in, it would be a shame to lose it....

