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The non refundable part about the deposit would not be enforceable as all security deposits are refundable assuming that there are no damages to the property and no delinquent rent or fees due.
As for using it for last month 's rent, that is not allowed unless the landlord agrees because the purpose of a security deposit (i.e. damage deposit) is to give the landlord a cushion of funds to use if the tenant causes actual damages to the property or leaves owing fees or rent. It is not last month's rent and can't be used for that absent specific approval from the landlord.
So if a tenant is unable to pay the rent, then the landlord will be able to give the tenant a 5 day written notice to pay or vacate and then evict through the courts if the rent is not paid.
That is, of course, unless the landlord agrees to allow the deposit to be applied towards last month's rent.