L is full of it. By changing the deduction terms, L has screwed himself royally!
L can only charge your daughter for expenses he actually incurred in re-renting the apt. If L had lots of units & was advertising them, he didn't have to pay any extra money to advertise her apt specifically. The application fee is to cover tenant screening costs (credit checks, reference checks, etc.) & "cleaning". If he charged the new tenant the same $140 application fee, your daughter doesn't have to pay for the new tenant's screening costs. She is entitled to a refund of the entire deposit less any advertising that was *necessary* after she broke the lease. ALSO, if L charged the new tenant the same "cleaning fee", your daughter should get that money refunded also. (L can't charge the same cleaning fee to 2 people.)
Under 83.49, L has 15 days from termination of the lease to refund T's money or send T written notice of the deductions L will be taking from the deposit. T has 15 days to object to any deductions. After T's 15 day's pass, L must refund the balance of the deposit within 15 days. This gives L a maximum of 45 days to send the check. If L fails to send the notice of claim within 15 days, L cannot withhold ANY of the deposit.
Have your daughter send L a letter (certified, return receipt) demanding a full refund because L didn't comply with 83.49. If L had stuck to the original $175 liquidated damages agreement, he could have argued that he didn't have to send her a letter of his intent to deduct that $$ formt he deposit. However, since he reneged on the agreement, he had to comply with 83.49.
L's claim that he's not bound by his oral promise works to your daughter's advantage!
L now has to refund the entire deposit and sue her separately for breach. In a separate suit or counterclaim for breach of lease, L has the burden of proving every penny of damages he wants awarded. This is why daughter gets the cleaning portion of the fee back. She can claim that L was unjustly enriched because he collected 2 cleaning fees but only had to clean once. (Daughter will need to talk to the replacement tenant to verify this.)
Also, I doubt the new tenant is a sublease. To be a sublease, your daughter had to sign a separate sublease contract. The new tenant is just a replacement tenant.
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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.