HELP! back and forward tenant!

[Ngoc Thy Vo]

I have a person who signed to lease my property.  He gave me a deposit, and we signed contract.  The contract stated that tenant will pay first month rent when he move in effective July 1st, the deposit money will return back to tenant when he moves out after contract end in one year.  However, on July 1st, tenant changed his mind, he wanted to terminate the contract and not pay the 1st month rent.  He asked to have his deposit money back, and I said no. Now, he continues to threaten me.  After a week, he said we want to rent the property again and willing to pay the 1st month rent.  However, I denied him, because I don't feel secure to rent the house to him after all the threats he told me.

I have two questions in this situation hope someone can help me clarify.

  1) Do i have the right to keep his deposit money in this case?  

  2) If i don't rent the house to him now, am i liability for any issue?