The landlord refused to refund the deposit on the grounds that things were damaged.

Tenants who refuse to refund the deposit can negotiate with the landlord first, or ask the neighborhood Committee or police station to help mediate and negotiate. If negotiation fails, they can bring a lawsuit to the court with evidence records such as the rental contract signed with the landlord and ask the landlord to return their deposit.

Legal objectivity:

Article 394 of the Civil Code of People's Republic of China (PRC) guarantees the performance of debts. If the debtor or a third party mortgages the property to the creditor without transferring the possession of the property, the debtor fails to perform the due debt or the creditor has the right to receive priority compensation for the property. The debtor or the third party specified in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property that provides guarantee is the mortgaged property. Article 578 of the General Principles of the Civil Law of People's Republic of China (PRC) * * * If one party explicitly expresses or indicates by its own behavior that it will not perform its contractual obligations, the other party may require it to bear the liability for breach of contract before the expiration of the performance period.