Legality Of Keeping Portion Of Secuirty Deposite When Potential Tenant Back Out?

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I listed my duplex for rent. A couple viewed and gave me a deposite. A week later (nearing the first of the month) when he is about to sign the lease he bails becasue his GF breaks up with him. I turned away about 20 potentially good tenants (this is in a disable area with a very disarable duplex) and took it off the market. Also he bought the washer and refridgerator from the previous tenant who since moved it. I was set back having to relist the premises and start over. Not only that I it took a week before he could move the washer. I was lucky to get it rented a bout a week later and when he came to get teh washer he sold the refridgerator to the new tenants moving in.

From what I can tell from CA law I was within my rights to keep a portion of the deposite unti such time I get the place rented because by bailing he prevented me from renting for another week. He is now demanding that he is entitled to the full deposit.

I read about implied contracts and having given a deposite he agreed to the terms of the lease as advertised. Am I obligated to give him back his 300?

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