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My tenants have not signed lease...

So, tenants paid deposit and first months rent with check.  Never signed lease.  Have lived there for over a week and now want to move out.  Before they moved in, we painted rooms to colors of her liking and put in new blinds.  She was very picky.  Anyways theyre moving out and we have their money.  Are we legally required to give back the rent?  I'm assuming we don't have to since there was no contract and they just gave us money.  Also, I'm assuming we have to give back the deposit?  
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WA State - Verbal rental agreements are legal and are considered to be month-to-month tenancies. The Law also states that if you take any kind of deposit or nonrefundable fee, the rental agreement must be in writing and state the terms and conditions under which your money is refundable. This may create a problem for you……..Further, the law requires that month-to-month tenants give landlords at least 20 days written notice before vacating the unit. The landlord must receive written notice of move-out date 20 days before the end of the rental period. Example - if rent is due on the first of the month, and tenant plans to vacate by 30th, then you must receive a Written Notice by the 10th of the month. If you did not receive the proper 20 days Written Notice, or if tenant stays longer than the date tenant gave notice for, you can charge tenant for the following month’s rent…… This may seem cold, but in the future NEVER, NEVER, NEVER allow tenants to move in or store items on your property until all $$$ are received in cash, money order or bank check AND papers are signed/dated.  -----Disclaimer: Since I’ve been answering a lot of questions, I thought I would make the following statement. I’m not affiliated with EZlandlord Forms. I’m just here (not sure how long) to help those that have questions. Having 40+ yrs with Rental Property and done well, it’s my way of “Pay it Forward (check out the movie).” However, it is up to you to become familiar with your State/Local laws. I always like to know if the suggestions I offer are helpful. Feel free to comment anytime. Thanks in Advance.
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