It isn't a security deposit. I paid a seperate cleaning fee, which is non-refundable.
I also paid 1st and last month rent.
WOW, looks like this must have been a nice place to get you to pay all that. Generally, my answer is still the same, read the lease. My argument would be that if your 1st and last month's deposit is security for the payment of rent and the return of the rental in good condition that you have already paid the rent, so, they should release that part. The lease will tell you your rights, but the landlord may be nice anyway.
It's a dump! But, I've kept it up and improved on it.
Sounds like its time to move on. Take lots of pictures before you move out, hopefully you took them when you moved in. This landlord sounds like they are going to try to get every penny from you.
I'm sure you are correct there. Thank you.