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