Pennsylvania Security Deposit Laws in 2025

Landlords in Pennsylvania use security deposits to protect against standard risks such as unpaid rent, lease violations, and property damage. When following Pennsylvania security deposit laws, landlords can determine what they can collect, how to hold the funds safely, what deductions are permitted, and when to return the funds to the tenant. 

When landlords follow the rules, they retain the right to deduct justifiable costs. If not, the tenant can ask the court for double. This guide provides both landlords and tenants with a breakdown of Pennsylvania security deposit laws, outlining how both parties can enter and exit a rental lease with minimal trouble.

If you’re a landlord in Pennsylvania looking to know the rules around rental deposits, keep reading. We’ll kick off the guide with an overview of the landlord’s role and responsibilities, followed by some helpful tips on tenant guidance and an FAQ section at the end. 

Landlord Compliance Basics

If you’re a landlord, you're likely aware of the benefits of passive income, an appreciating asset, and the empowering feeling that comes with entrepreneurship. However, it can be a nightmare if you’re caught in a messy legal situation.

In the first year of a tenant’s lease, landlords can collect up to two months’ rent for the security deposit. In the second year, and each subsequent year thereafter, you can hold only one month’s rent as the deposit. After five years of continuous tenancy, you cannot increase the deposit even if the rent rises. 

Furthermore, you must also hold the deposit in a separate account, and if you hold more than $100 for longer than two years, pay the tenant interest after the second year has concluded. To be clear, you do not need to hold the money in an interest-bearing escrow account for the first twenty-four months. Most landlords choose to open a clearly labeled security-deposit sub-account at their bank. However, if, after 24 months, the deposit is more than $100, which is likely, the law requires landlords to store the funds in an interest-bearing account at a federally regulated institution that pays the tenant interest.

*Municipal code 68 P.S. § 250.511b 

Here are a few more quick notes for landlords to remember about Pennsylvania’s security deposit laws:

1. You must return the unused deposit amount within 30 days; otherwise, you risk incurring a double penalty under the double security deposit law in PA.
2. The deposit limit applies even if the tenant has a pet. While some states permit landlords to charge an additional deposit for pets, this is not the case in Pennsylvania. You can adjust the total rent cost to factor in a pet, which will naturally influence the amount required for the deposit. However, keeping this nuance clear in your mind and on your rental lease agreements will ensure that you’ve stayed compliant with Pennsylvania landlord-tenant law’s security deposit rules. 
3. You cannot upcharge the deposit if the unit is in a risky or high-demand area. Even if you are worried about risk, demanding extra security money would violate the Pennsylvania security deposit law.

Deductions Landlords May Take

Although Pennsylvania allows reasonable deductions, it does not allow you to treat a security deposit like extra rent.

You are entitled to deduct:

• Unpaid rent and unpaid utilities that were the tenant’s responsibility under the agreed-upon lease terms.
• Damage beyond normal wear and tear. Examples include, but are not limited to:
  • A fist-sized hole in drywall or a broken interior door.
  • Pet urine in carpet or subfloor that requires replacement, not just cleaning.
  • Large, permanent stains on carpet from paint, oil, or food.
  • Broken window or cracked glass caused by the tenant.
  • Missing or broken fixtures (light fixture, towel bar, cabinet door) that were intact at move-in.
  • Neglected mold or moisture damage caused by the tenant not reporting a leak.
  • Burn marks on counters or floors.
• Cleaning costs if the unit was left significantly dirtier than at move-in.

You may not deduct:

• Routine repainting.
• Light carpet wear from everyday use.
• Small nail or thumbtack holes.
• Minor cleaning that every turn requires. Examples include, but are not limited to:
  • ​​Vacuuming or sweeping floors.
  • Light mopping of hard surfaces.
  • Wiping down kitchen counters and cabinet fronts.
  • Cleaning the inside of the fridge and microwave, if they were basically clean.
  • Wiping bathroom fixtures, mirrors, and vanity tops.
  • Spot dusting window sills and baseboards.
  • Basic trash removal, the tenant forgot to take out.
  • Replace a couple of dirty drip pans or wipe the stove top.
  • Light interior glass cleaning, like fingerprints on a patio door.
  • Quick wipe of scuffs that come from everyday furniture use.

If you charge for normal wear, tenants have a strong claim to make. If you can furnish documentation of actual damage with photos, time stamps, and vendor invoices, you have a better chance of your position holding up in court should it come to that.

Returning Security Deposits on Time

Pennsylvania gives landlords 30 days from the date the tenant vacates to return any portion of the security deposit that remains. This is one of the most important aspects of Pennsylvania security deposit laws because it triggers a hefty and unnecessary penalty. If you miss the 30-day deadline, the tenant can ask the court to award up to 2x the amount under the double security deposit law in PA.

Here is the order of operations landlords would be wise to follow:

1. Confirm the final move-out by retrieving the keys and having the tenant confirm their date of exit in writing.
2. Inspect the unit and document any damage that exceeds normal wear and tear.
3. Determine the extent of repairs by gathering estimated costs, invoices, and/or vendor rates.
4. Prepare an itemized list of deductions.
5. Mail the list and the remaining deposit to the tenant’s forwarding address within 30 days.

If the tenant does not provide a forwarding address, send it to the last known address in the file and retain proof of mailing. That way, you can show the court you complied with Pennsylvania's security deposit law even if the tenant never picked up the mail or was unreachable through no fault of yours.

The onus is on the landlord to provide proper documentation and follow protocol when a tenant moves out. Try to think of it as only getting one shot to get it right, or prepare to be at a disadvantage if the tenant were to pursue legal action.

First, Last, and Security

Certain landlords prefer to collect the first month's rent, the last month's rent, and a full deposit when a lease is signed. Pennsylvania counts a prepaid final month’s rent as part of the deposit.

So, if rent is $1,200:

• First month: $1,200 (rent)
• Last month (held): $1,200 (counts toward deposit)
• Security deposit: only $1,200 in year one

That total of $2,400 ensures compliance with the Pennsylvania security deposit law and prevents an overcollection violation.

Holding Deposits

Holding deposits are allowed, but with specific conditions. If a landlord takes money to hold a unit until the tenant signs the lease, it should be applied to the rent or the deposit. 

If rent is $1,500 and you have already collected $1,500 to hold it, you cannot then collect a new two-month deposit in year one, as it would exceed what Pennsylvania security deposit laws allow.

Philadelphia Properties

We are frequently asked about any nuances in major cities in Pennsylvania, such as Philadelphia. Landlords in major metro areas must follow the same rules as the rest of the state. No unique Philadelphia security deposit laws exist that would allow you to avoid the 30-day return, the 2-month then 1-month cap, or the itemization requirement. 

Simply put, if you manage units in Philadelphia and use the same checklist, you will be compliant across the state.

What Happens If a Landlord Misses the 30 Days?

If landlords do not return the money or send the list within 30 days, the tenant can sue. Pennsylvania makes this a simple process for tenants. 

1. A tenant can file in magisterial district court without a lawyer and cite Pennsylvania's security deposit return law. 
2. If the landlord cannot provide invoices, receipts, or photos to justify deductions, the judge may enter a judgment in favor of the tenant and, in cases of bad faith, may double the amount. 

The best defense is to pay the justifiable amount of the deposit as quickly as possible to avoid any last-minute concerns about missing this deadline.

Tenant Guidance 

As stated earlier, much of the responsibility under the Pennsylvania security deposit law falls on the landlord, but it doesn’t mean tenants have to take a passive role.

Let’s spend some time going through how tenants can protect themselves in a landlord dispute, and most importantly, get their full deposit back.

Tenants who want a full rent deposit refund should, at a bare minimum:

1. Document their move-in with photos.
2. Clean to move-in level upon leaving the premises.
3. Repair anything they broke within reason. For example, we’d suggest not dismantling the HVAC system to try to fix a major issue. It’s best to work that out with the landlord as a part of the moving-out process. 
4. Provide a forwarding address. Doing this allows the landlord to follow the 30-day process without friction.

What Tenants Can Do If Landlords Do Not Return The Deposit?

Tenants can file in small claims and cite the Pennsylvania security deposit return law. The filing fee is low. The tenant will likely bring the lease, their photos, and the letter they sent asking for the money. If the landlord misses the deadline or fails to itemize, it will be difficult to defend.

Lastly, and this goes for both the landlord and the tenant, it’s best to maintain regular, polite, and professional communication throughout the process. Negative emotions can escalate a situation unnecessarily.

Remember each party’s basic motivation and do your best to work together to find civil resolutions before involving courts.

1. A tenant wants their rightful security deposit back quickly.
2. A landlord wants to hand over the unit to the next resident.

Working together helps get to both of those results faster.

If you are a property owner looking to manage your properties with superior lease management to protect yourself and your property, reach out to Hemlane to start today

Frequently Asked Questions

What is the holding deposit law in PA?

In Pennsylvania, a holding deposit is often used by landlords to hold a rental unit for a prospective tenant before they sign the lease. There is no specific state law regulating holding deposits; thus, the terms are generally dictated by the landlord. Typically, if the tenant proceeds with the lease, the holding deposit is either returned or applied toward the first month's rent or security deposit. If the tenant decides not to rent, the landlord may keep the deposit depending on the agreement.

Can a landlord charge you for cleaning in PA?

Yes, in Pennsylvania, landlords can charge tenants for cleaning costs if the cleaning is necessary to restore the rental unit to the same level of cleanliness as it was at the beginning of the tenancy. This charge must be justified, and it cannot be used to cover normal wear and tear. Landlords should provide documentation or an itemized list of cleaning costs if deducted from the security deposit.

How do I sue my landlord for a security deposit in Pennsylvania?

To sue a landlord for a security deposit in Pennsylvania, you can file a claim in small claims court, also known as the Magisterial District Court. The process involves filing a complaint and paying a filing fee. The amount in dispute must not exceed $12,000. It's recommended to bring all relevant documents, such as the lease agreement, move-in and move-out inspection checklists, correspondence with the landlord, and any photos or evidence supporting your claim.

What happens if a landlord does not return a security deposit in 30 days in Pennsylvania?

In Pennsylvania, if a landlord fails to return a security deposit or provide a written list of damages within 30 days after the termination of the lease and delivery of possession by the tenant, the landlord forfeits the right to withhold any portion of the security deposit. Additionally, the tenant may sue to recover up to twice the amount of the security deposit withheld.

What is considered normal wear and tear on a rental property in Pennsylvania?

Normal wear and tear in Pennsylvania refers to the deterioration that occurs naturally over time with normal use of the property, and without negligence, carelessness, accident, or abuse by the tenant or visitors. This can include minor scuffs on the walls, carpet wear from walking, faded paint, and other similar conditions. It does not include significant damage like holes in the walls, broken tiles, or stains on the carpet that are beyond what is considered normal usage.

What are Pennsylvania's security deposit laws right now?

Two months’ rent in year one and one month after that. The money is placed in a separate account and accrues interest after year two. A 30-day deposit return with itemization is required, with the threat of double damages for bad faith if the situation escalates to small claims court.

Do landlords have to return the entire deposit?

No. Landlords can deduct for unpaid rent and damage beyond normal wear and tear. However, landlords must send the former tenant an itemized list on time under the Pennsylvania security deposit return law.

Can I charge a separate pet deposit?

Only if the total stays within the cap; if a pet deposit goes over the sum of two months’ worth of rent in the first year, it violates rental security deposit laws in Pennsylvania. You may charge more for rent each month as a condition of a tenant housing a pet.

What if the tenant never provides a forwarding address?

It’s best to send the check and itemized list to the last known address on file, which you can likely source from their original rental application. Maintain proof of mailing, such as time-stamped pictures. Doing so helps you demonstrate that you have met the conditions under which a landlord is required to return the security deposit

How can landlords stay compliant?

 Maintain a standard move-out checklist with each tenant. Document with photos. Mail the itemization and refund within 30 days. Keep receipts. That is the simplest way to comply with Pennsylvania security deposit laws.

Does this apply in Philadelphia and other metropolitan areas?

Yes, the Philadelphia security deposit law functions the same way as the rest of the state.