Can a landlord keep a security deposit if the tenant breaks lease early but causes no damage to property?

If he did not give you proper notice and left without paying last month's rent (sounds like this is what happened) then you can withold the deposit in lieu of last month's rent. If "deck railing" has deteriorated because you did not receive proper notice that it was broken, then you can charge him for the cost of fixing it. You cannot expect to be held accountable for a problem you never knew existed (ie people "tripping" on the walkway).

This is maybe something you should address before moving a new tenant in, though. He should not have called an inspector for the ants/termites. He should have informed you and let you deal with it how you saw fit.

If you received a bill from an inspector because he used your name, then send him the bill, or withold this from his deposit, as well. Since he had a lease, you can legally hold him responsible for the entire length of the lease, unless there is a break fee mentioned, which he needs to pay. Some states demand you do "everything reasonable" to re-rent the property, but he is responsible for advertising fees, etc. Basically, he broke his lease.

He lost any right to his deposit, and you have the right to hold him responsible for the remaining months. I don't know where he gets off thinking he has the upper hand after knowingly breaking a legal contract.

If he never informed you of issues, you had no way of fixing them. He does not get his deposit back. Let him sue you, he will never win.

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