[RedCeli]

If your gf and her friends backed out of the deal, they can't do anything. That's the whole idea of the deposit, to hold the suite because you want it. If the renter backed out, he has to give the entire deposit back. The rules about suites are different in every municipality, so you'll have to call the city to get the exact rules for that area about the legality of the suite. If it was me, I'd call report the suite and then file a claim in small claims court and tell them that they backed out because they discovered the suite was illegal and didn't want to live there because of it. They should win with that argument, truthful or not.