Tenant paid security deposit

[Nick Kelly]

Went through tenant screening process, tenant filled out application and I approved. She sent the security deposit in to lock down the place. It took a few days to get the lease together because there was a little back and forth (she didn’t mention she had a dog until initial lease came through and it mentioned no pets). I agreed to allow the dog for a pet deposit (even worked with her on this bc she couldn’t afford extra every month for pet fee so I agreed to a one time deposit). I sent the new lease the following day and she said that she was now worried the dog would damage the unit and didn’t feel comfortable moving in ( along with a few other things) and said she is scheduling other places to see and would like her deposit back. At this point I have turned away other potential tenants and pulled the postings down. This process has wasted a little over a week of time. Although there is no signed lease, it has wasted a lot of my time and delayed getting other viable options in (money!). Is there a protocol on how to proceed with the security deposit?

[Sean Lambert]

You avoided a trouble tenant that likely couldn't have afforded the higher rent and the dog could have done damage.  Thankfully she was upfront about everything.

Return the deposit and continue your search.  If you passed on decent tenants, call them back and say that the unit is available again.

Good luck.