Overview
Pennsylvania has detailed security deposit regulations that include declining deposit limits over time, mandatory escrow requirements, and interest payments to tenants. These rules are governed by the Landlord and Tenant Act of 1951 and provide meaningful protections for renters.
This guide covers everything landlords and tenants need to know about security deposits in Pennsylvania.
Deposit Limits
Pennsylvania sets tiered security deposit limits based on the length of the tenancy:
- First year: Maximum of 2 months' rent
- Second year and beyond: Maximum of 1 month's rent
After the first year, if the landlord holds more than one month's rent, the excess must be returned to the tenant. Landlords may not charge additional deposits upon lease renewal.
Escrow Requirements
Landlords must deposit the security deposit in an escrow account at a federally or state-regulated financial institution. After the first two years of the tenancy, the deposit must be held in an interest-bearing escrow account, and the tenant is entitled to receive the accrued interest (minus a 1% administrative fee the landlord may retain annually).
The landlord must provide the tenant with the name and address of the financial institution and the account number.
cite: 68 Pa. Cons. Stat. § 250.511a
Allowable Deductions
Landlords may deduct from the security deposit for the following reasons:
- Unpaid rent: Any rent owed at the time of move-out
- Damage beyond normal wear and tear: Repairs for tenant-caused damage (not ordinary wear)
- Breach of lease: Costs arising from specific lease violations
- Cleaning: Costs to restore the unit to the condition it was in at move-in
What Constitutes Normal Wear and Tear?
Normal wear and tear includes:
- Minor scuffs on walls
- Small nail holes from hanging pictures
- Worn carpet from regular use
- Faded paint due to sunlight
Damage beyond normal wear and tear includes:
- Large holes in walls
- Stained or burned carpet
- Broken windows or fixtures
- Unauthorized alterations to the unit
Return Timeline
Landlords must return the security deposit within 30 days of the termination of the lease or the tenant surrendering the unit, whichever occurs later. The return must include:
- The remaining deposit amount (if any deductions were made)
- An itemized written list of all deductions and amounts
- Payment of any accrued interest (if applicable after the second year)
If the landlord fails to provide the itemized list within 30 days, the landlord forfeits the right to withhold any portion of the deposit, regardless of actual damages. The tenant may then recover double the deposit amount.
If the tenant does not provide a forwarding address, the landlord must send the deposit to the tenant's last known address.
cite: 68 Pa. Cons. Stat. § 250.512
Pre-Move-Out Inspection
Pennsylvania law does not require landlords to offer a pre-move-out inspection. However, tenants and landlords are encouraged to conduct a joint walk-through before the tenant vacates the unit. This can help both parties document the condition of the property and reduce the likelihood of disputes over deductions.
Dispute Resolution
If a tenant believes their deposit was wrongfully withheld, they can:
- Send a demand letter to the landlord requesting the return of the deposit
- File a claim in Small Claims Court (up to $12,000 in Pennsylvania magisterial district courts)
- Contact a local tenant rights organization for assistance and guidance
If the landlord fails to return the deposit or provide an itemized statement within 30 days, the tenant is entitled to double the deposit amount as a penalty, regardless of actual damages.