My question involves a security deposit in the State of: CA
2 months ago, I rented an apartment from a property management company that told me there was an "illegal deed trust" filed again the landlord but that it would be settled shortly so it was ok to go ahead and rent the place. Anyway, to make a long story short, I stayed 2 months, was uncomfortable with the living situation, and then decided to move out, completely under the conditions set forth in the lease. My security deposit and first month's rent was made out to the property management company, but according to the lease, the landlord is supposed to give me back my deposit. I have spoken with the property management company and they told me they only have part of my deposit as they billed my landlord to get the house ready for me to move in, and he requested that they take it out of the deposit I gave them.
First question I have is, Is it kosher for the property management company to spend my deposit on house repairs not related to any damages I caused? The management company tells me that it was my landlord's money while I was renting and he can spend it as he wishes since he's the one who's supposed to be responsible for the deposit at the end of the lease term.
Second question I have is, If the landlord ends up being a deadbeat (which I'm starting to fear will be the case), can I go after the management company for the full amount of the deposit since they are still technically holding onto at least part of it?
Thanks for your help.