10Doors Templates Philadelphia

Security Deposit Rules for Philadelphia Landlords

Pennsylvania’s security deposit law (68 P.S. § 250.511a–512) sets hard limits on what Philadelphia landlords can collect and strict deadlines for returning it. Violating the return deadline can cost you the deposit plus penalties — here is the complete picture.

The Pennsylvania rules

Cap: Maximum two months’ rent during the first year of the tenancy; maximum one month’s rent for year two and beyond.

Escrow: Deposits over $100 held for more than two years must be placed in an interest-bearing escrow account; after year two, the tenant is entitled to the interest minus a 1% administration fee.

Return deadline: Within 30 days of the tenant moving out and providing a forwarding address, you must return the deposit or send a written itemized list of damages with the balance.

Penalty: Failure to provide the itemized list within 30 days forfeits the right to withhold anything — and can expose you to double damages.

Move-in/move-out lists: Pennsylvania expects a written list of existing damage at move-in and a move-out inspection; doing both makes deductions defensible.

Philadelphia specifics

Philadelphia adds no separate deposit cap, but the city’s licensing regime matters here: an unlicensed rental invites trouble in any deposit dispute that reaches Municipal Court.

Keep the deposit paper trail aligned with your Certificate of Rental Suitability and lease documents — Philadelphia judges notice gaps.

The return-letter template

Use this fill-in disposition letter to satisfy the 30-day requirement.

SECURITY DEPOSIT DISPOSITION — PENNSYLVANIA

Date: ____________________

To: __________________________________ (former tenant name(s))
Forwarding address: ____________________________________________
Re: __________________________________ (rental property address, unit)
Tenancy ended: ____________________

Deposit held: $____________  (plus accrued interest, if escrowed: $____________)

Itemized deductions:
  1. Unpaid rent: $____________
  2. Damage beyond normal wear (attach receipts/estimates): $____________
  3. Other (describe): ____________________  $____________

Total deductions: $____________
Amount returned: $____________

This itemization is provided within 30 days of termination and receipt of your forwarding address, as required by Pennsylvania law (68 P.S. § 250.512).

_____________________________          ____________________
Landlord / Agent signature                    Date

Frequently asked questions

How much security deposit can I charge in Pennsylvania?

Up to two months’ rent in the first year, and one month’s rent from the second year on.

How long do I have to return a deposit in PA?

30 days from the end of the tenancy and receipt of the tenant’s forwarding address — with an itemized list if you deduct anything.

Do Philadelphia landlords have extra deposit rules?

The deposit rules are state law. Philadelphia’s overlay is licensing: you need a valid Rental License to be in good standing in any Municipal Court dispute.

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This template is provided for general informational purposes and does not constitute legal advice. Landlord-tenant law changes and local ordinances may impose additional requirements — verify current state and local rules before serving any notice. Last reviewed September 2026.