California Property - Tenants Gave Notice

[Dave Newgass]

Hello,

I have a piece of property I inherited in March.  When I advised the current tenants I was the new landlord, I tried to put their mind at ease and let them know everything will remain the same as it is and if I ever decided to sell, they would have first right of refusal.  I think they spooked as now they have just served me with a 30-day notice to move as they now have a house in escrow.

They told me they will be out of the house by August 20th and asked if I wanted them to pay pro-rated rent for the month up until the 20th or if I would just like to keep a portion of the deposit to cover the pro-rated amount.  This is where my questions arise and I need some help with how to handle this legally.

My initial thought is that they still pay a full month's rent and that I would refund them back a pro-rated amount based on the day they hand the keys in.  Then, after inspection give them back their deposit, subject to the state of the house.

The reason I am thinking this (rightly or wrongly) is that just because a house is in escrow doesn't mean they will be ready to move out on a specific date even with all good intention on their end.  Also, it could fall out of escrow.  

Is it legal to do what I am proposing?

Also, they did mention the carpets will need to be cleaned.  What can I debit from their deposit in order to make the house to where it can be ready to move into?

On a side note as well, my step-father who gifted me the house rented to these tenants for 5 years at a rate that is under the current market.  It should be getting $300 more per month.  The most I can raise the rent on the current tenants is about $100.  Even though they have given notice, can I serve them with a rent increase just in case their house falls out of escrow and they have to continue to live there?  I'll be putting the house on the market regardless but thought if I can get another $100 per month over a few months, that would be nice.

Thanks for the help and advice!

Cheers,

Dave