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Good day. I am Loren, a licensed attorney, and I look forward to assisting you.
Was this an extension of the original lease? Was the security deposit to be applied to the new lease?
Was there something in writing indicating that the security deposit was to be continued in the new lease?
Thank you for the additional information.
The security deposit may only be used for unpaid rent and damage to the premises in excess of reasonable wear and tear.
So, if they leave the premises after the new lease term has begun then they owe rent and the deposit can be used to cover the rent that is owed.
If they leave before the new lease term begins then you will need to return the deposit and sue them for the breach of the new lease.
I realize this is probably not the answer you were hoping to receive. Also, please remember that this is not a moral judgement on my part. As a professional, however, I am sometimes placed in the position of having to deliver news which is not favorable to a customer's legal position, but accurately reflects their position under the law. I hate it, but it happens and I only ask that you not penalize me with a bad or poor rating for having to deliver less than favorable news.
Did you have further questions? Have I answered your question?