I like to be fair, but I don't like to be taken advantage of. First, DO NOT use your security deposit as rent. This must be handled appropriately, and the rules of your lease must be enforced. You were given this notice, so you must have some time to rectify the problem. If not, anyone could report mice, and use that as an excuse to break their lease. Immediately, schedule a pest control company to get the problem under control. Make sure you keep all records and written correspondence, showing that you are trying to resolve the problem. Unless the house is just "infested" with mice, I would not let them do this. You could talk to them and offer to let them out with only a 30day notice(do not let them use SD as the last month's rent). I would consider this if they had been there over 2yrs and were always on-time, and if I knew I could get another tenant quickly. Otherwise, when they are late, serve a pay or quit and begin eviction so you can get a judgement against them. They want to move and have YOU pay for their early termination. Two months of missing rent payment is a lot for you to have to concede for 1 or 2 mice. They are either not being reasonable about the situation, or they are using it as an excuse to get out of the contract early.
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