Prospective tenant clears background check and wants to rent house starting May 1. We agree to hold the property until May 1 with nonrefundable holding deposit that will convert to security deposit upon occupancy. Rental/Pet/Security deposit agreements signed, we're happily thinking done deal.
Three days later tenant emails saying she drove the neighborhood to show her teenage kids the house and neighborhood, and that they don't like the neighborhood or schools. Does she lose her deposit if she cancels the contract.
I reply that yes, the deposit is nonrefundable should she not move in on May 1.
We do month-to-month rental agreements, so she could technically give notice that she will occupy for May, move out before June 1, and potentially get her deposit back less any damages.
Do I continue to show this property and line up another tenant, maybe even prorate some deposit back (Compassionate side of me is burdened, this lady is getting divorced and obviously wishy washy on decision making skills...) or do I just let this play out, force her hand, and potentially have a cranky occupant that moves out quickly. Part of the reason we do month-to-month agreements is to lose bad renters quickly, and allow people the ability to move fairly quickly and easily if they're dissatisfied or life circumstances change. The deposit was $2400, so fairly substantial loss for her should she walk...