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Do they have separate lease agreements are were they on the same lease. If separate, repair the damages, subtract it from security, then give half back. If the same lease, the other person should give that person their half, that way the remaining tenant has sole ownership/responsibility of the security you are holding. Inform them about the damage so the remaining tenant doesn't get stuck with the entire repair bill. If they are on the same lease, why should you give 1/2 security back? That means when the other moves out, you'll only have 1/2 as much security if they mess the place up.
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