If they opt not to accept the property by declining to timely give you a non-refundable reservation fee or actually sign the lease with a full security deposit and first month's rent THEN AND ONLY THEN should you process the next applicant.You should not process multiple people and select one subjectively; you're asking for trouble with fair housing when someone claims they were discriminated against.Offer the property to the first one that applies that meets your written standards for qualification.

As mentioned read your lease carefully.My lease states tenant is responsible for duration of lease or until It is rerented and they lose their deposit.

I just read chapter 16 (getting ready to close) in "The Book on Rental Property Investing" and it talks about keeping a checking account for rent and a savings for security deposits. 

We think the Buyer got cold feet and was afraid we were going to keep their deposit, so they ginned up a complaint.

@Theresa Harris - Good point....you can also deduct the window expense from her security deposit upon move out.

Ask her to schedule a final walk of the unit on or before (the departure date) with you so that you can arrange for any return of security deposit provided the unit is in satisfactory condition and all contents/trash are removed from the premises. 

That's why we also have a simple early termination for leases (1 month + deposit if there's no damages), because they get to walk clean and we get the property back, no fuss no muss.

every other agent has then direct deposited..  !!! 

@Reuven Kishon: Actually, there are quite a few credit unions around the country that do not have in-state LLC registration requirement either for membership or to establish a deposit account so unless you have a particular need to be in San Diego....

Tenant is suing the landlord (an acquaintance) for not returning security deposit.