Tenant signed contract - decided to back out on moving day

[Ryan Rush]

Today I had a person who traveled from a long way away to move into a property I have. When he originally called me I explained to him that the property was very small- about 530 square feet of living area. He said not a problem. The house he lives in now is smaller. We went through the entire process - he signed the lease - sent the down payment. Today when he showed up he said it was too small and he couldn’t live there. I told him that was up to him but I explained I would keep the amount that was written in the lease for someone who leaves before the lease is over. He was very upset because he had never moved in or paid the rent. He said he was going to get a lawyer involved. I feel bad for them that they came 800 miles to move into a house that is too small, but I don’t feel it is my fault that he doesn’t understand square footage and I don’t feel I should have to pay for his mistake. I feel completely justified for keeping the money to help me through the process of getting someone different in now.

Am I in the wrong here?