Legal Question in Landlord & Tenant Law in California

Of course you do, but the first thing you have to do is write the property manager that you have not been paid and request the full payment now and ask why you never got the refund. Instead of considering what type of lawsuit you might have, uses the easier route of trying to get the money directly. It does not make sense that they described it as being a security deposit instead of a holding charge, from which they could have deducted some or all of the charge. You do not say when you were supposed to move in and thus whether any rent was lost because the new tenant did not move in until 7/1. if that was the date you were supposed to start paying for rent, you clearly are entitled to the entire security deposit back plus perhaps interest from the date they were supposed to return the money to you [although you should have asked them sooner so i would not push on the interest claim]. If 7/1 was after you were supposed to move in, they did lose rental income and the security deposit can have deducted from it the amount of lost rental, but the landlord must within 21 days after you have given up possession [you never got possession so it is unclear what date would apply but if they never sent out the refund they have waived any right to any deduction]