Southern California Landlord Ordered to Repay Withheld Security Deposits [Orange County, CA]

ORANGE COUNTY, CA (March 30, 2024) — Arnel Management Company, a corporate landlord with 19 apartment complexes across Los Angeles and Orange counties, has been ordered to pay over $1 million in refunds to tenants. 

The California Attorney General’s Office accused the company of illegally withholding security deposits by automatically deducting preset cleaning charges, a practice that violates state law.

The investigation into the Arnel security deposit issue revealed that these fees were deducted regardless of an apartment’s condition upon a tenant’s departure. To avoid these charges, tenants were forced to hire professional cleaning services, an option that sidesteps the essence of California’s tenant protection laws.

This isn’t Arnel’s first brush with the law regarding security deposit withholding; a similar settlement was reached in 2001. California law stipulates that landlords can only withhold cleaning fees if the apartment is left in a worse condition than at tenancy commencement. 

Tenants have the right to request a pre-move-out inspection to identify and address potential deductions, safeguarding their security deposits from unjust deductions for normal wear and tear.