Tenants submitted payment for security deposit, now have to leave

[James Taylor]

Have in interesting scenario.  Put the property on the market for rental, did an open house, found some renters that we liked.  Took it off market.  They submitted their security deposit, but have not signed the rental agreement.  Now they have to move out of state.  Can I keep any of the security deposit since it's been a week that I missed while this is happening?  I'm a bit agitated because we cancelled an open house.

[Andrew B.]

I have good news and bad news. Bad news: In the absence of a deposit to hold agreement, you are most likely going to have to return the deposit. Good news: You just learned why a deposit to hold agreement is important, and you now know what to do in the future to protect yourself!