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whether or not it is "just" an apartment -- the issue is that they misrepresented the situation and apparently either broke rules in taking your deposit or in allowing the tenant to back out of the intent to vacate letter--
you have not technically suffered damages because you have not had to eat any money for other deposits or because you gave notice and had to pay early termination fee or movers' charges and then can't move--
no monitary damages means you don't really have much of a legal case...which is why the apt has probably done this in the past...
I wonder if that was not a bait and switch move by leasing agents
maybe they know the tenant was not really going to move--they get you to put down deposit under pretense that renter is giving up the unit you want--they let you get your notice to move underway
maybe line up your movers and then BOP--call says sorry guy is not going to move
frankly I would ask to see the letter he gave with intent to vacate--they should not have leased the aprtment without that--if they have it then the tenant is in violation and the manager is violating policy to allow that person to stay vs enforcing the contract for you as new tenant...
they got your money and want to have to take another (lesser attractive in your POV) apartment...
I think that happens a lot more than people want to admit..
same thing happened to my son and his then-fiancee when they were moving over a year ago...
if you are not moving into that apt complex--I would send a registered letter to the home company with copy of your contract and notes about phone conversations with leasing agents--would also send notice to the board in the city that regulates apartments--there are laws/regulations against doing this...