Josh Shapiro, Unlawful Deductions, Pennsylvania 2023

Students in State College were hit with illegal surcharges on their security deposits by a property management company now under court scrutiny. The Pennsylvania Office of Attorney General, led by Josh Shapiro, has cleared a critical legal hurdle in its case against Associated Realty Property Management (ARPM), after a judge ruled the company cannot hide behind technicalities to justify unlawful deductions.

ARPM routinely slapped students and their families with unapproved administrative fees, cleaning charges, and fines unrelated to actual property damage—deducting the costs from security deposits without warning or justification. These surcharges, deemed illegal under both the Pennsylvania Consumer Protection Law and the state’s Landlord and Tenant Act, formed the core of the AG’s lawsuit. The company attempted to dismiss the case through a motion claiming the law was either unenforceable or unconstitutional. The court rejected that argument outright.

Judge Katherine Oliver of the Centre County Court of Common Pleas issued a scathing rebuke of ARPM’s position, affirming that the Landlord and Tenant Act clearly limits what landlords can deduct from security deposits. The ruling allows the Attorney General’s office to pursue civil penalties, sending a message that exploitative practices targeting student renters will not be tolerated. Shapiro’s team argues these tactics are predatory, preying on young tenants unfamiliar with their rights.

“The last thing students and their families need to worry about during the school year is an unexplained, illegal deduction from a security deposit at the end of a lease,” Shapiro said. “We’re putting landlords on notice: if you charge these illegal fees, you’ll have to face us in court.” The lawsuit highlights a broader pattern of abuse in college towns where out-of-state families are often unaware of Pennsylvania tenant protections.

Senior Deputy Attorney General Brandon Bingle is prosecuting the case, building on a growing record of consumer enforcement actions under Shapiro’s office. The decision paves the way for potential financial penalties and could force ARPM to reform its leasing practices or face further sanctions. Tenants who were improperly charged may eventually be eligible for restitution.

The ruling underscores the state’s willingness to hold landlords accountable for violating tenant rights. With student housing demand soaring in college communities like State College, the AG’s office warns others in the industry that illegal deductions will be met with legal action. The full trial on the merits of the case is expected to proceed in the coming months.

RELATED: Citi Scammed $1M

Related Federal Cases