My question involves landlord-tenant law in the State of: Ohio
A prospective tenant filled out an application and left the co-applicant line blank. She said there would be 3 people living in the apartment. She mentioned kids so I assumed it was 2 kids. We made a verbal agreement for her to rent the apartment. She gave me a holding deposit of $425. When we met later in the month ( the 25th) to sign the lease, to transfer the keys and receive the remaining deposit and 1st month's rent, she mentioned that her boyfriend would be moving in. He had 3 felonies and material financial problems. I decided not to rent to them and kept the holding deposit. She's suing me for the deposit back. I lost a month's rent + utilites so I suffered a financial loss. Is there a court case or law that states that if the prospective lies, deceives or withholds material information, that they do not get their holding deposit back? I could not find anything in the Ohio Revised code or a court case on lexis nexus in Ohio,(I am a novice at lexis nexus though). I've seen language online stating that if I suffered a financial loss and the prospective tenant is at fault or tried to deceive, then the holding deposit does not have to be returned, but there was no legal reference for the statement.
Thanks for any help on this.