Submitted by adeolu, also found by adeolu
token.longterm_rental.cancellation.percentage is not deducted from the token.longterm_rental.deposit_amount and refunded back to the user as expected after a cancelreservationafterapprovalforlongterm() call to cancel a reservation that has been approved.
https://github.com/code-423n4/2024-10-coded-estate/blob/97efb35fd3734676f33598e6dff70119e41c7032/contracts/codedestate/src/execute.rs#L1647-L1683
In cancelreservationafterapprovalforlongterm() we can see how no money is refunded to the tenant after cancellation is made after approval. The function does not calculate the refundable amount incase of a cancellation by tenant after approval like it is done in cancelreservationafterapprovalforshortterm(). See here.
A landlord can set that cancellations after approval will happen with a 90% refund via setlistforlongtermrental(), where the token.longterm_rental.cancellation.percentage will be set to 90. But this will never be enforced in the cancelreservationafterapprovalforlongterm() code. The function will never refund but instead cancel the reservation with no refund processed to the tenant. This is against the intention of the landlord/token owner because token owner set the token.longterm_rental.cancellation.percentage to be 90% and so 90% of the deposit amount should be refunded to the tenant that cancelled.
In finalizelongtermrental(), since item.cancelled has been set to true, the iteration logic there tries to deduct a fee percentage from the amount, but this amount is not the token.longterm_rental.cancellation.percentage set by the token owner. Instead it is the fee_percentage for the protocol which only the contract owner can set via set_fee_value().
https://github.com/code-423n4/2024-10-coded-estate/blob/97efb35fd3734676f33598e6dff70119e41c7032/contracts/codedestate/src/execute.rs#L1727-L1731
The use of self.get_fee(deps.storage) instead of token.longterm_rental.cancellation.percentage means that the cancellation penalty specified by the token owner to be enforced on cancellations after approvals will not happen.
Use token.longterm_rental.cancellation.percentage to calculate amount to be returned to tenant instead of self.get_fee(deps.storage) if the deduction will be enforced in finalizelongtermrental().
OR 
Add extra logic like below into cancelreservationafterapprovalforlongterm() to check that refundable amount is calculated as directed by the landlord/token owner.
Context
blockchainstar12 (Coded Estate) acknowledged and commented:
Lambda (judge) decreased severity to Medium and commented:
