If (1) the terms of the lease or rental agreement provided for the tenant to pay utility fees, and (2) there are unpaid utility fees left over when the tenant vacates, then the answer is yes. Otherwise, no. For general information about security deposits, the controlling authority is Calif. Civil Code ยง 1950.5.
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You should know first, I am a tenant's rights attorney in San Francisco. That's my orientation. I don't represent landlords. That said, in response to your question, you really should contact an experienced SF landlord's attorney to assist you. I know it may seem like a simple set of questions you have asked here, but the answer depends on the terms of your rental agreement, the whole rent payment & rent increase history, the circumstances underlying why the tenant is refusing to pay rent,...
The answer to your question depends on the facts of the particular situation. Evictions are controlled by several sources of law which overlap and are constantly evolving. For example, there are terms in the oral or written rental agreement, state statutes & case law about how the terms of the agreement are applied, there are state eviction statutes, local ordinance(s) regulating rents and providing "just cause" limitations on evictions. But not all these laws will apply. Every situation is...