LEGAL QUESTION: Agreement on renting a unit? (I am seller)

I had a posting listed on Redweek for a unit in California. The date is for less than a week from now so I was eager to rent this unit quickly and priced it to go fast! When I did this, I got quite a few inquiries, about 7 in total. I spoke with one of the potential renters over the phone and agreed to rent it to them. They stated that they would have the payment sent over that evening. The next day, they had still not sent the money via paypal as they said they would, so I rented it out to someone else who was willing to pay immediately. Now, the first guy who did not pay me is saying that he is going to pursue legal action against me because we had a verbal agreement. Does he have any legal recourse here? Is there any chance that I am "in breach of contract?"

It seems unlikely to me that he would have any rights for 2 reasons (and I am not a lawyer so this is conjecture): 1. he broke whatever contract because he did not agree to his terms of paying that day. 2. there was no signed agreement and it is real property (so doesn't there need to be something written or money changing hands for it to be legal?).

You have no contract with the first party. You were well within your rights to rent it out to the second party. You snooze.... you lose.