Corporate Landlord That Illegally Withheld Deposits Must Repay Tenants

Under a settlement, Arnel Management, which has 19 complexes in L.A. and Orange counties, must also pay civil penalties and donate to tenants’ rights groups.

South Pointe Apartments on Baker Street in Costa Mesa, Calif., run by Arnel Management, in March 2023. Google Maps/Screenshot via California Insider

A corporate landlord in Southern California was ordered to pay tenants back for security deposits it was accused of illegally withholding, thanks to a settlement agreement, according to the California Attorney General’s Office in a March 29 press release.

Arnel Management Company, which owns 19 apartment complexes in Los Angeles and Orange counties, is accused of automatically deducting pre-set cleaning charges from security deposits, in violation of California law and an existing injunction against the company.