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.
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 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.
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
Up to two months’ rent in the first year, and one month’s rent from the second year on.
30 days from the end of the tenancy and receipt of the tenant’s forwarding address — with an itemized list if you deduct anything.
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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Manage your property free on 10DoorsThis 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.