Tenants pulling out last minute/ advice

[Brian Whetstone]

Hello BP, 

I have a couple come see a property we have for rent, it is a C+ property, far from perfect but offered at prices that match the quality. 

We used rent redi to screen tenants, everything looked good, they paid for the deposit, pet fee and 1st months rent prorated  for a lease starting November 9. Leases signed for month to month with a 60 day notice to vacate. It was made clear this property would be a transition place for them.  ( in their words probably just through winter) 

Now 3 day before they reached out and would like to back out. After dropping some boxes at the property. 

How would you handle the money side of this? Are they forfeiting what they put down? 

Any advice would be great, thanks!