By experience, once you paid, as foreigners, there are no rights nor services anymore from Thai landlords. I could see 3 options:
1- stay there in accordance with the lease term and get deposit back (it's not sure the lanlord will refund you, it's becoming a nasty habit that Thai landlords keep deposits)
2- leave without the deposit for your peace of mind
3- find a lawyer, contact consumers protection association and fight
We opted 3rd option because we were so fed up with all these unfairness and nasty, bully behaviours of some Thai. Our friend lawyer just sent an email and that's
it. We got our deposits back. Most landlords rent without paying taxes and they don't want troubles.