Pet Deposit and Deposit deductions

[Mike H.]

Recently I have had a question pop up and I thought I would check with other LLs to see how you guys deal with it.  I have a property that has received a 1-mon deposit (say, $1000) and a refundable deposit ($500) for pets.  When comes to damage deduction, do you deduct the pets associate costs on the pet deposit and others on the 1-mon deposit?

Do you send a bill to tenant when the overall deduction exceeds the $1,000 or $1,500 amount?

If it is the $1,000 amount, what's the reasoning behind it? 

Thanks in advance for all who comments on this question.