Hi,

I received a rent deposit of $950 from a potential tenant for an apartment that I was renting.
He changed his mind a little over a month later about moving into the apartment because he claimed that he got laid off from his job. Although I was angry, I told him that I would refund him half of the money out of the goodness of my heart. I sent him a money order for the full amount. He called me a month later and told me that he never received the money. I had since lost the money order receipt/stub. I later found that this person never got laid and decided to rent another apartment instead.
Now this man is suing me in small claims court for the full deposit. I now feel so stupid. I never had the chance to make him sign a contract. We only had a verbal contract.
I would like to file a counterclaim against him for loss of income, as the apartment is still vacant. Is that a good idea? What proof should I have if I counter? Or should I just cut my losses and pay him the money? Please help

It sounds to me like you had an oral contract - he agreed NOT to keep the apartment and you agreed to refund his money.

All else is immaterial.

I see no case here.

First you will need to trace the money order from your receipt and prove it was cashed, if not, you can ask for a refund of the money order.

If there is not witten lease, normally in "most" states in the US, there would need to be a 30 day written notice to move out, ( even if he never moved in, he has to give a 30 day notice to vacate.

But you can not charge double rent, so if you rented it out right away, then you are not out that loss.

In some states you can not withhold the deposit for unpaid rent, but have to sue for that rent if you return the depoist for damages.

I don't see that he has a case, but it will be if the judge believes you or him, I would look at a counter suit for unpaid rents depending on the time he was suppose to move in and the such