Pennsylvania Security Deposit Laws: Limits, Deductions and Deadlines

By TenantLoop teamUpdated 3 min read

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General information, not legal advice. Landlord-tenant rules change, and cities and counties can add their own. Check the current statute and local ordinances, and talk to a licensed attorney before you act.

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The short version

  • During the first year of a lease the deposit may not exceed two months of rent, and from the second year or a renewal on, one month. After five years, a rent increase cannot be used to raise the deposit.
  • Within 30 days after the lease ends or the tenant surrenders the unit, the landlord must return the deposit or send a written list of damages with the balance.
  • A landlord who misses the 30 day written list loses the right to keep any part of the deposit and to sue for damages; the tenant must give a forwarding address in writing.
  • After the second anniversary, a deposit over 100 dollars earns interest for the tenant, paid yearly, less a 1 percent administrative fee the landlord may keep.
  • A landlord who fails to pay back the difference within 30 days owes double the amount by which the deposit exceeds actual damages.

Pennsylvania caps deposits at two months of rent in the first year and one month after that. Landlords have 30 days after move out to send a written list of damages, and deposits held longer than two years can earn interest for the tenant.

Pennsylvania security deposits at a glance

RulePennsylvaniaLaw
Deposit limitDuring the first year of a lease the deposit may not exceed two months of rent, and from the second year or a renewal on, one month. After five years, a rent increase cannot be used to raise the deposit.Landlord and Tenant Act of 1951, section 511.1
Deadline to return the depositWithin 30 days after the lease ends or the tenant surrenders the unit, the landlord must return the deposit or send a written list of damages with the balance.Landlord and Tenant Act of 1951, section 512
Itemized deductionsA landlord who misses the 30 day written list loses the right to keep any part of the deposit and to sue for damages; the tenant must give a forwarding address in writing.Landlord and Tenant Act of 1951, section 512
Interest on depositsAfter the second anniversary, a deposit over 100 dollars earns interest for the tenant, paid yearly, less a 1 percent administrative fee the landlord may keep.Landlord and Tenant Act of 1951, section 511.2
Penalty for wrongful withholdingA landlord who fails to pay back the difference within 30 days owes double the amount by which the deposit exceeds actual damages.Landlord and Tenant Act of 1951, section 512

How much you can collect

Deposit limit. During the first year of a lease the deposit may not exceed two months of rent, and from the second year or a renewal on, one month. After five years, a rent increase cannot be used to raise the deposit. (Landlord and Tenant Act of 1951, section 511.1)

Holding the deposit

Where the deposit is held. Deposits over 100 dollars generally must be held in an escrow account at a federally or state regulated institution, unless the landlord posts a bond instead. (Landlord and Tenant Act of 1951)

Interest on deposits. After the second anniversary, a deposit over 100 dollars earns interest for the tenant, paid yearly, less a 1 percent administrative fee the landlord may keep. (Landlord and Tenant Act of 1951, section 511.2)

Deductions and normal wear and tear

A deposit can cover unpaid rent and damage beyond normal wear and tear. Everyday aging, such as faded paint, small nail holes or light carpet wear, is not damage.

Itemized deductions. A landlord who misses the 30 day written list loses the right to keep any part of the deposit and to sue for damages; the tenant must give a forwarding address in writing. (Landlord and Tenant Act of 1951, section 512)

Returning the deposit

Deadline to return the deposit. Within 30 days after the lease ends or the tenant surrenders the unit, the landlord must return the deposit or send a written list of damages with the balance. (Landlord and Tenant Act of 1951, section 512)

Penalties for wrongful withholding

Penalty for wrongful withholding. A landlord who fails to pay back the difference within 30 days owes double the amount by which the deposit exceeds actual damages. (Landlord and Tenant Act of 1951, section 512)

Mistakes to avoid

  • Skipping a dated move-in condition report with photos, then having nothing to compare against at move out.
  • Charging for normal wear and tear.
  • Missing the return deadline, even by a few days.
  • Not asking for a forwarding address before the tenant leaves.
  • Losing track of deposit money by mixing it with operating funds without a ledger.
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Verify current law

We last checked these Pennsylvania rules on . Laws change and cities can add their own, so confirm the current text before you rely on it, and talk to a Pennsylvania attorney about your situation.

Laws named on this page

  • Landlord and Tenant Act of 1951, section 511.1
  • Landlord and Tenant Act of 1951, section 512
  • Landlord and Tenant Act of 1951, section 511.2
  • Landlord and Tenant Act of 1951

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Before you act on it. Check the statute too; this is not legal advice.

Is there a limit on security deposits in Pennsylvania?

During the first year of a lease the deposit may not exceed two months of rent, and from the second year or a renewal on, one month. After five years, a rent increase cannot be used to raise the deposit. Source: Landlord and Tenant Act of 1951, section 511.1.

How long does a Pennsylvania landlord have to return a deposit?

Within 30 days after the lease ends or the tenant surrenders the unit, the landlord must return the deposit or send a written list of damages with the balance. Source: Landlord and Tenant Act of 1951, section 512.

Do Pennsylvania landlords have to pay interest on deposits?

After the second anniversary, a deposit over 100 dollars earns interest for the tenant, paid yearly, less a 1 percent administrative fee the landlord may keep. Source: Landlord and Tenant Act of 1951, section 511.2.

What happens if a Pennsylvania landlord keeps a deposit wrongly?

A landlord who fails to pay back the difference within 30 days owes double the amount by which the deposit exceeds actual damages. Source: Landlord and Tenant Act of 1951, section 512.

TenantLoop team · reviewed

Written by the team building TenantLoop. Our guides are general information for landlords and property managers; check current law and talk to a qualified professional before you act.