New Tenant with Renter's Remorse

[Alan Y.]

Hi BP,

I just completed rehab on a duplex which is my first investment property.  I successfully placed 1 tenant in a unit.  I have a 2nd tenant that signed a lease and moved in on 11/1.  After 1 week he asked that he be allowed out of the lease and get his security deposit back. He started nit picking on little things that he didn't like about the apartment like no blinds provided, doesn't like the floors, etc. The unit is a brand new rehab with everything new so there is not much that can be picked on and he looked at the apartment twice before signing the lease so he knew exactly what it looked like.  I offered to install blinds if that would keep him in the unit and he still wants to terminate the lease if I will let him out of it. Upon signing the lease he paid up front with first months rent, last months rent, security deposit, and $500 non-refundable pet deposit. The property management company already took 1 months rent as a fee, so if I give him back the security deposit, I am left keeping the pet deposit and big headache starting a tenant search over again and dealing with transferring utilities, etc.  I am not obligated to let him out of the lease but I certainly don't want an angry tenant in my unit for a year.  Seeking advice from the community on the best way to handle it.. Thanks in advance.

Alan