US Legal Forms
Legal Resources
Questions & Answers
Landlord Tenant
What are the rules for security deposits in Pennsylvania?

What are the rules for security deposits in Pennsylvania?

Full question:

In the state of PA, what is the rules for 'Procedures concerning security deposits vary widely from state to state, with a sizable minority of states requiring placement in a separate, interest bearing bank account with interest being periodically paid out to tenants.' Is there any? I appreciate your help!

Category: Landlord Tenant
Subcategory: Security Deposit
Date: 04/07/2025
State: Pennsylvania

Answer:

In Pennsylvania, whether a landlord must place a tenant's security deposit in an escrow or interest-bearing account depends on the lease agreement. There is no specific state law requiring this. According to Pennsylvania law (68 P.S. § 250.511a), landlords cannot charge more than two months' rent for a security deposit during the first year of a lease. In subsequent years, the deposit cannot exceed one month's rent. If a tenant has lived in the property for five years or more, any rent increase does not justify a higher security deposit. Upon lease termination, the security deposit and any interest must be returned to the tenant as outlined in sections 511.2 and 512. This law applies only to residential rentals, and any waiver of these rules by the tenant is void.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What is the holding deposit law in PA?

In Pennsylvania, holding deposits are not specifically regulated by state law. However, landlords often use holding deposits to reserve a rental property while the tenant completes the application process. It is important for landlords to clearly outline the terms regarding the holding deposit in the lease agreement, including whether it is refundable or non-refundable. If the rental agreement is finalized, the holding deposit may be applied to the security deposit or first month's rent. Always check the lease for specific terms.

Is a holding deposit refundable?

Whether a holding deposit is refundable in Pennsylvania depends on the terms outlined in the lease agreement. If the lease is signed and the tenant moves in, the holding deposit is typically applied to the security deposit or first month's rent. However, if the tenant decides not to proceed with the rental, the landlord may retain the holding deposit as compensation for taking the property off the market, unless otherwise stated in the lease.

How long can a landlord hold a security deposit in PA?

In Pennsylvania, there is no specific time limit on how long a landlord can hold a security deposit. However, upon lease termination, the landlord is required to return the security deposit and any accrued interest to the tenant within 30 days. It is essential for landlords to keep accurate records and return the deposit promptly to avoid potential disputes.

Am I entitled to interest on my security deposit?

Under Pennsylvania law, landlords are not required to pay interest on security deposits unless stated in the lease agreement. If the lease specifies that the security deposit will be held in an interest-bearing account, the landlord must pay the tenant the interest accrued. It is advisable for tenants to review their lease to understand their rights regarding interest on security deposits.

What is the statute 250.512 in PA?

Pennsylvania statute 250.512 outlines the requirements for the return of security deposits. It mandates that landlords must return the security deposit, along with any accrued interest, to the tenant within 30 days after the lease ends. If any deductions are made, the landlord must provide an itemized list of those deductions. This statute helps protect tenants' rights regarding their security deposits.