Tenant sublet a room and moved out

I had a tenant sublet a room from my tenant who is actually on the lease, gave me one months rent and security deposit and then decided to move out before the the month ended with less than a weeks notice.  She did not sign my lease or amendment and now is requesting the security deposit back.  The tenants on the lease said she verbally agreed to the terms of lease and agreed to sign a lease or amendment but never did before she moved out.  Am I as a landlord, obligated to return her security deposit? Or are the tenants responsible for the security deposit?

The security deposit and the l...

The security deposit and the lease in general for a sub-lease should be the responsibilty of the existing tenant. The existing tenant is, in effect, the landlord of the sub-leasing tenant, so any money or agreements should be between the two of them. The initial tenant should still be governed by the initial lease to you regardless of what sort of sub-lease they agreed to. In the future, if you agree to have someone sublease I would make sure that the money flows properly from tenant 2 to tenant 1 then to you. It will avoid confusion and ensure that you are not entering into any transactions outside of what you intend. 

Thank you for the response. I ...

Thank you for the response. I understand that now. However, do I need to retrun the security deposit since they techincally had a verbal (month to month) agreement? Or must they wait until the initial lease agreement expires?

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