Legal Question in Landlord & Tenant Law in California

Although you have a lease, courts are infamous for basically ignoring that and awarding landlords only future rents to cover how long they feel it will take to re-rent the unit. So as to any money you have in hand, the last category you apply it to is unused rental months. You must notify the tenants that you are going to withhold a certain amount of money and then wilthin 21 days of the tenants having moved out and given you the keys, you must return any excess and give a detailed explanation of why you are withholding the rest. Apply the money first to the damage done by the dog as to the pet deposit, if there is anything left over is if you can justify other damages as being related to the pet [you should be able to do that without any problems], then apply what is left to the damages beyond normal wear and tear. If there still is any money left, which I suspect is not the case, you can apply it as being for the rent lost during the time you need to find a new tenant.

Be sure to back the deductions up with photos, written descriptions, bills for the work done and estimated for the work done and to be done, reference to any pre-rental inspection list, etc. Point out how much full compensation to you would be, how it was neither fair nor legal to breach the lease and how would they feel if they had wanted to stay and you kicked them out early, you will listen to any objections they have but you have been fair and honest, etc.

Good luck.