Philadelphia is split almost evenly between renters and owners. About 327,500 of the city’s 679,400 occupied homes, or 48.2 percent, are rented, and the median gross rent is $1,397 a month, according to the U.S. Census Bureau’s 2020 to 2024 American Community Survey (Homzora Philadelphia dataset, Table B25003; Table B25064). About 90,200 renter households, roughly 27.5 percent of the city’s renters, pay half or more of their income in rent (Table B25070).
Philadelphia security deposits are governed mainly by Pennsylvania’s Landlord and Tenant Act. Its rules differ from many states in one important way: the maximum deposit changes after the first year of a lease. This guide explains the rules as summarized by Community Legal Services of Philadelphia, which provides free legal help to low income Philadelphians.
Homzora is a housing research publisher, not a law firm. This article explains Pennsylvania law in plain English and is not legal advice for your situation.
Quick answers
- Maximum: two months’ rent in the first year, one month after (Community Legal Services).
- Refund deadline: 30 days after you move out, with a written list of damages.
- Penalty: tenants who gave a forwarding address may sue for double the deposit.
How much a Philadelphia landlord may hold
| Period | Maximum deposit |
|---|---|
| First year of the lease | Two months’ rent |
| Beginning of the second year | One month’s rent; any excess must be returned |
Community Legal Services explains that during the first year of a lease, a landlord may not require a security deposit of more than two months’ rent, and at the start of the second year the landlord may keep no more than one month’s rent and must return the rest, citing 68 P.S. Section 250.511 (Community Legal Services, Security Deposits in Pennsylvania).
A worked example
Suppose your rent equals the Philadelphia median gross rent of $1,397. In the first year, the landlord could hold up to $2,794. When your second lease year begins, the landlord may keep no more than $1,397 and should return the other $1,397 to you. Mark your lease anniversary and ask for the excess in writing if it is not returned.
Bank accounts and interest
According to Community Legal Services, deposits over $100 must be held in an approved bank, and the landlord must tell you in writing where the money is held. The landlord does not have to pay interest during the first two years of the lease. Starting in the third year, the deposit goes into an interest bearing account, and the tenant receives the yearly interest minus a 1 percent fee the landlord may keep (Community Legal Services).
Getting your deposit back
Give a forwarding address
Community Legal Services stresses that, to be able to sue for double the deposit, a tenant must give the landlord written notice of the new address after moving out (Community Legal Services). Send it in a way that proves delivery, and keep a copy.
The 30 day deadline
If you move out at the end of your lease and provide a forwarding address, the landlord must respond within 30 days after you move out. The landlord must give you a written list of damages, excluding reasonable wear and tear, and refund the deposit minus the cost of the listed repairs (Community Legal Services).
If the landlord misses the deadline
Community Legal Services explains that if the landlord does not respond within 30 days, the tenant cannot be sued for damages the landlord claims the tenant caused, and the tenant may sue for double the amount of the security deposit (Community Legal Services). That remedy depends on having given a written forwarding address.
Reasonable wear and tear in older homes
Philadelphia has a large stock of older housing. About 298,300 housing units in the city were built in 1939 or earlier (Table B25034). The damage list may not include reasonable wear and tear (Community Legal Services), so the ordinary aging of old floors, plaster, and fixtures during your tenancy should not be charged to you. Photos from move in day are your best evidence of what was already there.
Survivors of domestic or sexual violence
Philadelphia’s ordinance allows victims of domestic or sexual violence to end a lease early, and Community Legal Services notes that the landlord cannot keep the security deposit because the tenant ended the lease early for that reason (Community Legal Services, Domestic Violence and Your Lease; Philadelphia Fair Housing Commission).
A Philadelphia deposit checklist
- Get a receipt for your deposit and confirm in writing where it is held if it exceeds $100.
- On your first lease anniversary, ask for any amount above one month’s rent.
- From the third year, check that interest is being paid.
- Photograph the unit at move in and move out.
- After you move, send your forwarding address in writing.
- Count 30 days from your move out date.
A sample demand letter
Date: 2026. To: [landlord]. Re: Security deposit for [address]. I moved out on 2026 at the end of my lease and sent my forwarding address in writing on 2026. Under the Pennsylvania Landlord and Tenant Act, you were required within 30 days to provide a written list of damages and return my deposit minus the cost of those repairs. [I have received neither.] [I dispute the following charges as reasonable wear and tear: (list).] Please return [amount] by 2026. If you do not, I may sue for double the amount of the deposit as the law allows. Sincerely, [name].
Help
Community Legal Services provides free legal help to eligible low income Philadelphians (Community Legal Services). The Philadelphia Fair Housing Commission handles unfair rental practice complaints (Fair Housing Commission).
Build your evidence file
Disputes with landlords are usually decided by documents, not memories. Keep these together from the day you sign:
- The signed lease, every addendum, and every renewal.
- Receipts or bank records for the deposit and each rent payment.
- Dated photos and video of every room at move in and move out.
- Copies of every repair request and the landlord’s replies.
- Every notice you send or receive, with proof of delivery.
Store copies somewhere other than your phone, such as an email to yourself, so they survive a lost device.
Before you sign your next lease
- Ask who owns the building and who manages it, and get contact details in writing.
- Read the clauses on early termination, subletting, renewal, and notice before you sign, not after a problem arises.
- Confirm the deposit amount, where it will be held, and how it will be returned.
- Walk through the unit with the landlord, note existing damage in writing, and keep a signed copy.
- Ask whether the unit is covered by any local rent rules, so you know how much the rent can change if you stay.
How Philadelphia renters live and commute
Of about 726,400 Philadelphia workers, roughly 46 percent drove alone, 17 percent used public transportation, 7 percent walked, and 18 percent worked from home during 2020 to 2024 (Homzora Philadelphia dataset, Table B08301). With nearly half of commuters driving, parking terms in a lease, such as permit availability or garage fees, can matter as much as the rent itself.
Key terms
- First lease year cap: up to two months’ rent may be held during the first year of a lease (Community Legal Services).
- Second year reduction: from the start of year two, the landlord may keep no more than one month’s rent.
- Escrow and interest: deposits over $100 are held in an approved bank, with interest to the tenant beginning in year three, less a 1 percent fee.
- Double damages: the amount a tenant who gave a forwarding address may sue for when the landlord fails to comply.
Frequently asked questions
My landlord still holds two months’ deposit in my third year. Is that allowed?
No. At the beginning of the second year, the landlord may keep no more than one month’s rent and must return the excess (Community Legal Services).
Do I earn interest in my first year?
No. Interest is not required during the first two years of the lease (Community Legal Services).
What if I never gave a forwarding address?
Send one now in writing. Community Legal Services notes that the written forwarding address is required to be able to sue for double (Community Legal Services).
My deposit is $150. Does the bank notice rule apply?
Yes. Deposits over $100 must be held in an approved bank, and the landlord must tell you in writing where (Community Legal Services).
Can my landlord deduct for normal wear and tear?
No. The landlord’s damage list may not include reasonable wear and tear (Community Legal Services).
When does my landlord have to start paying interest?
Interest is not required during the first two years of the lease; beginning in the third year, the deposit goes into an interest bearing account and you receive the yearly interest minus a 1 percent fee (Community Legal Services).
Sources
- Community Legal Services of Philadelphia, Security Deposits in Pennsylvania (citing 68 P.S. §§ 250.511 and 250.512)
- Community Legal Services of Philadelphia, domestic violence lease termination guidance
- Philadelphia Fair Housing Commission, Unfair Rental Practices
- U.S. Census Bureau, ACS 2020 to 2024 5 year estimates, via Homzora