Stick to your guns, and since you are right across the street, take some pictures. What gets me is that it's a renter's market right now because a lot of people who had houses and now don't because of the economy, are renting. Landlord's are jacking rent because of it and getting downright greedy these days. I have heard some real horror stories. Some are trying to evict their present tenants so they can jack the prices for the long list of those wanting housing. You do have rights as a Renter and exercise those rights. A lot of people think that the Landlord has more rights than they do, but that is not true. While you rent, you own the space you are in and the Landlord cannot evade that space without proper prior notice or an emergency.
Deposit money was suppose to go for cleaning and damage in the past, but now they call it a "Security Deposit". The Landlords have been bending the laws where deposits are concerned and some charge way over what is legal. There have been places I've moved into in the past that were so filthy and still got charged a deposit. However, when I moved out, everything on the checklist (shampoo carpets, etc.) had to be done in order to get my deposit back. What I would like to know is did the Landlord "pocket" the last renters deposit because the place was not clean, and then didn't clean it for me? There's no other explanation. Renter's deposits are in the same category of rip off insurance companies. There should be stricter laws about putting over a thousand dollars into someone's hands that have the power to say if you get it back or not.....on their definition!