Legal Question in Business Law in California

I have a feeling that you are asking about something that is governed by a contract between you and the real estate management company. I'd have to see that contract before I could give you any definitive answer.

The management company must abide by its contract with you. Perhaps the contract allows them to retain the credit, perhaps not. I think more likely than not you are entitled to some or most of the money, maybe not all of it. That's just based on my own experience as a small-time landlord using a property manager for the nitty-gritty. Somebody isn't reading the agreement carefully enough, or doesn't understand it. I'd say probably the management company is being lazy, especially when it favors their bank account. Hopefully, the funds are at least in a client trust account, so they are safe........hopefully. The answer to your question is that both of you are legally obligated to observe the terms of your agreement.