Questionable potential tenant

[Amelia Hentschel]

I have potential S8 tenant with 2 kids (16 yo son and 20 yo daughter).  She doesn't work.  She and her son receive SSD benefits.  1st red flag - during the phone screening, she told me she has 1 dog.  I told her we don't normally accept pets but will review on a case-by-case basis.  Her niece completed the online application for her (not sure why it was her niece who submitted the app) and disclosed 2 dogs.  I asked her about it and she said it's her sick aunt's dog and she's taking care of it for her.  I gave her a copy of our pet addendum (only 1 pet is allowed in the addendum) and informed her of the $100 one-time non- refundable pet fee and $50 monthly pet rent.  2nd red flag - On the app, she submitted an expired PA state ID.  Our property is in MD and she currently lives in MD (for 4 years now).  I asked and she said she will get a new ID.  In the meantime, I completed and submitted her S8 paperwork.  Her proposed move-in date is 10/1.  S8 home inspection was just completed 2 days, but I have some minor fixes to do.  After 3 weeks of no ID, I asked if she doesn't drive.  She said she does, but her driver's license is not valid also. Still no valid ID or DL, as of this writing.   3rd red flag - it took a while for them to complete her daughter's app.  I had to remind her a few times.  Once submitted, it was missing an ID.  According to her, her 20 yo daughter has no school or work ID.  4th red flag - she asked to split her security deposit in 2 payments.  The 1st on 9/30, and 2nd on 10/3, which I reluctantly okayed.  Our policy has been 1 month security deposit upon move-in.  Yesterday, she asked to pay the $200 pet fee (for 2 dogs) in sometime in October.

Sorry for the long background info.  Now for my question - can I still legally decline this potential tenant even after submitting her S8 paperwork? Her current lease expires on 9/30.  There are many red flags and I'm starting to doubt her honesty.  It feels like (just a gut feel) she's constantly hiding something.  Besides, I'm starting to doubt her ability to pay the additional $100 per month of pet rent.  I'm concerned that if I decline her now, that it would cause issues for me and potential lawsuit.  What are my options?  Appreciate everyone's feedback.