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I don’t have any advice to offer on the tenant-law side of things, but I’m not certain that the landlord’s final e-mail means what you think it means.
To me, “Please note that we will deduct any balance from your security deposit when you move out of the unit.” sounds like “If you withhold rent on your own initiative, I will take it out of your security deposit.”
I would respond by saying, “I don’t understand. Please clarify.”
You might still want assistance on the tenant-law side of things, but first I’d get the landlord to clarify what he means.