I have two approved applicants for my property and i have required a double security deposit (two month's rent, totaling $3,800.00) due to lack of rental history and one of them having some delinquent credit history. They are currently living with family and have stable employment history. I plan to agree to give half of the double security deposit back at the renewal of their one year lease, pending that they have maintained good standing and there have been no incidents within the first year that would warrant otherwise. Meaning that they don't have multiple late payments, cause damages to the house, cause unnecessary wear and tear, exceed the occupancy limit, breach the lease in other ways, etc. .

The goal here is that after the first year they will have established a track record that serves as it's own landlord reference for me to renew without requiring the double deposit. They have requested a clause that they will receive half of the security deposit back after the 1st year of occupancy provided there aren't any incidents. Has anyone had experience with writing such a clause, or would you write it as an addendum?

My draft as an addendum is as follows

Landlord and Tenant agree that provided a history of good standing, no damages to the property, minimal wear-and-tear, and a satisfactory Premises Inspection prior to renewal, half of the security deposit will be returned to the Tenant upon decision and approval to extend the Lease Term for a Renewal Term. The return of half of the deposit will be made at Landlord's sole descretion, and Landlord reserves the right to consider any and all factors in making a decision to approve or deny the return of any Security Deposit amounts outside of the terms under Return of Deposit contained within the Lease Agreement.

The property is a full gut high end renovation so precautions are being taken, however I want to be fair to good tenants, especially if they are long term. The lease is written to renew for a year if decided, it does not go month-to-month. Does what I have written seem safe to include as an addendum to the lease, or am I exposing myself to too many potential issues?