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Refund or No?

I have a tenant who agreed to the terms of the lease I allowed them to move in once they handed they first and last months rent.  I handed them the agreement for signature , they failed to sign the month to month agreement, however they did hold posession.  The agreement calls for 30 notice for moving out..... three weeks into the first month the tenant informed me they would be moving before the first... giving me less than two weeks notice prior to the upcoming payment.  Am i allowed to keep the last month payment for failure to give a 30 day notice

Simply don't have an agreement with them and the agreement you gave them is worthless. One should never hand over the keys without 1st having a written agreement, rent and security deposit....after approval.
So where does that leave me with the money..... i held the receipt pending receipt of the contract
Good question. My question to you...why didn't they sign the agreement the same time you received the money?
It is necessary to keep everything on paper because you can show them when there is a need. You have right to hold last month payment but as nothing is on paper no it depends on understanding of you and your tenant.
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