Tenant Eviction - How to handle the deposit scenary

[Mitchlyn D.]

I have a tenant who moved in June 2018, signed a 1 year lease, and submitted a deposit.

This weekend I learnt that they cannot make the August rent payment and we have agreed to part ways.

Question:  Being that they broke the lease agreement, do they lose out on the deposit?  How would you handle this situation?

Mitch