[patssle]

They are complaining after 1 month of moving in and knew exactly that they were getting bad carpet since they were getting a dog? They're just trying to take advantage and get new carpet. Tell them no and you'll re-think about it after a year (I'm assuming you have a year lease?). And if they keep complaining, show them how their rent is below the mortgage and you're losing money - you can't afford new carpet.