Deposit not returned

Having given 30 days notice we moved out of the house that we were renting. There was evidence of water damage in the bathrooms and kitchen, so we painted using a kitchen/bath paint. When the landlord had painted prior to my moving in, three and half years ago, she didn't use kitchen/bath paint. The ceilings were craking, peeling and mildewing. We applied a stiple to the ceilings to help correct this problem. The landlord has not been attentive to the maintenence of this property, she replaced the water heater only when it was required to bring it within the proper code. This was the only repairs/maintenance she has made in the three years that I lived there. All other repairs and maintenance were performed by myself.

Now we have moved out and she will not return any portion of the deposit or proof of repairs that have been done to the house. We offered to do what she wanted done (except paint the entire inside of the house, normal wear and tear) but that was not acceptable to her. We turned over the property, after shampooing the rug and cleaning the house, 5 days prior to the end of the month, even though we had given rent to the end of said month. She had new tenants in the property on the first of the following month.
We have sent written notification, via cerified mail, that the deposit or proof of repairs is due to the tenant within 30 days of thier vacating the property. It is now over 60 days. She responded by sending a copy of an estimate for the repairs, which was extreamly over priced. She requests that we give her permission to do these repairs. She admitted, via phone, that she has only gotten one estimate for the said repairs.

1. Do we have a right to a return of the deposit?
2. What action should be taken to remedy this situation?

Thanks for the advice,
S. Arant
[email protected]

Typically the landlord cannot deduct normal wear and tear nor major renovations from security deposits. Calif. is one state with very strict provisions protecting tenants. I would take her to small claims court to sue for all of your security deposit; there's a good overview of small claims law at this website's home page.