If tenant refuses to pay last month rent+electricity

[Hahna Reyes]

My lease agreement with tenant is month to month and the rent has to be paid by tenant by the 1st of every month. But now it’s the 3rd already and I don’t receive the rent from this tenant yet. Today (3rd) I’m going to send him a late rent notice but happen to see him in front of his apartment so I ask him about the rent then he said just use the deposit as the last month rent and he didn’t mention about last month use of electric at all.

My question is

1) Can he do like this to landlord against the lease agreement to use his rent deposit as last month rent?

2) Does he has to still pay his rent plus the late rent fees? (which is late rent payment fees will charge after 3rd is $25 plus $5 late each day until full payment received).

3) What steps should I take to handle this kind of tenant?

4) Do I still have to give him late rent notice or some other notices? I’m planning to send him late rent notice on the 4th.