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I am sorry to hear about this situation, Tammy. The landlord can keep a deposit (pet, or general) for the following:
-damage to property beyond normal wear and tear by you or your pets, or
Thus, it is legal for them to keep the deposit and even demand more, if they claim that the damage was not covered by the deposit.
However, if you feel that their damage claims are exaggerated, and should have been covered by the initial $300 and $200 deposits, or, there were not damages at all and they should return the deposits, you can file a small claims court action and let the Judge decide - see HERE.
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