new tenenat cancelled after paying rent and deposit

[Viney Khera]

Tenant chose not to rent after paying 1st month rent and deposit but before signing rental agreement, Landlord rejected other potential tenants during that time, verified refrences and credit for this tenant. do landlord need to refund any or all amount? This happened in California, for a single bed room in a 4 bed house where each room is rented separately.