Give the money back and always use a holding deposit that explicitly spells out the terms of the deposit.  

I think you just spelled out your issue.

This should all be spelled out clearly in the RTA. 

Everything will be spelled out in our operating agreement that will be finalized this week.

@Jennifer Hollander since it's not spelled out, I'd cut my losses, request that they return the unit to it's original condition, take the security and go to bed.....No need in kicking up dust with a good tenant who got an opportunity and decided to take it.  

Are they spelled out in lease?

This should have been spelled in the contract, but is normal operation.

The management agreement spells out the scope and authority of the relationship.

question.Thank you for spelling out just how many ways that question needed more background first. 

@Ben Gammon, because partnerships (I use LLC's or any multi member entity when I use Pship term) can be tricky, make sure you have a good Operating Agreement that not only spells out you as Managing Member or Administrative Member, but also how any future contributions (additional equity or other capital that would/could be added to the entity) will be treated.