If it's the first month's rent (i.e. there's no security deposit), then they paid for the month's rent. If they want to "move out" (i.e. not move in) then they have to give 1 month's notice.
If there's other circumstances like the landlord changing the living arrangements after they agreed (allowing more people to live there than they represented to the tenant) then that might mitigate things in a court. EDIT: Though if those things aren't actually mentioned in a contract, it might be hard to prove. Courts do tend to side with the tenants however.
If the guy's running things on the edges of the law then he might want to avoid court though so the best bet is to try to come to an agreement. Offer to split it down the middle.
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Uncertainty is an uncomfortable position.
But certainty is an absurd one.
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