Holding Deposit

[Dan Swanson]

I am fairly new to being a landlord, and have my first pain point on a deposit prior to signed lease. I had a group of 3 girls that submitted application, were approved, then gave me half deposit and agreed via e-mail on a move it date of the first of next month (via e-mail, not signed lease). We agreed that we would get the lease signed then do the rest of the deposit by Friday (check was given to us on Monday). We had a couple of discussions via e-mail during the week and agreed on things like pet deposit for 2 dogs, etc. Friday came and the prospective tenant said she couldn't make it to meet me due to work. I said I was free all day Saturday and could meet at any time. She wrote back later and said she could do 3:00pm. I agreed. Saturday morning she wrote a long apology and said she was working crazy overtime, blah blah blah and needed until Sunday. I reluctantly agreed and set the time to 3:00 on Sunday. At 2:30, one of the other roommates calls and says they are sorry but they just signed up for a new place this morning. Now of course they want their deposit back. Is there any reason why I would need to refund that deposit if I don't have a signed lease or a receipt on that payment stating the terms? I know now the proper process for the deposit (give a receipt stating it is non-refundable holding which converts to security).