Verbal "month to month" with angry ex military tenant
My friend and I found a listing for 2 rooms up for rent in Ithaca NY. One being bigger was for 500$, the other being very small was 250$. After meeting the current tenant who is renting the entire apartment himself he agreed to enter a verbal lease with us, with consideration of a 500$ security deposit from my friend for the bigger room and nothing from me because my room is more like a closet. Upon meeting him we had no idea he had just returned from 4 tours in Iraq, and was a straight up killer.To Quote him. Posting pictures of people he had killed over there on our walls, and covering the apartment with maps, and newspaper clipping really creeped us out, but we decided to stay until we move out effective Jan 1st.
My question is regarding a violent knock on my door at 3am, after I got up to go to the bathroom, the military roommate kicked down our doors screaming for us to get out of his apartment, kicking holes in the walls, and through his door. His orders were for us to be out of the apartment by morning, because of an episode he was having with his schoolwork and his stress from finals. He also stated he would not be returning my friends security deposit.
Do we have to leave because there is no lease>?
Can he just keep my friends deposit like that>?
What do we do?