Borderline Tenant Application

[Emilio Ramirez]

I've taken a cash deposit from a couple and verbally told them that they can have the apartment. Part of the acceptance was a $25 discount of rent from $850 to $825. In observing their behavior when they gave me the deposit I became a little concerned about their ability to pay. I have verified their income and it will be tight, but I have no written criteria for rejecting an applicant on income. A second applicant has applied and is much more financially able to rent the apartment. They are also able to pay the full rent. There has been no lease executed between me and the first tenant.

Since I've verbally offered them the apartment, do I have to rent it to them? Can I simply return their deposit and tell them that they weren't really qualified? I think if I ask them to pay the full $850 they will opt out. Or do I just have to rent to them now that I've taken a deposit and verbally accepted them? I've been looking at my state's landlord tenant law but can't come up with anything here. Any thoughts on the situation.

Much appreciated.