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Pennsylvania security deposit law
Checked against the Pennsylvania statutes on October 1, 2026 General information, not legal advice
Key numbers
- Security deposit limit
- 2 months
- of rent in the first year; 1 month from the second year
- 68 P.S. § 250.511a(a), (b)
- Deposit refund deadline
- 30 days
- after the lease ends or the home is surrendered and accepted, whichever is first
- 68 P.S. § 250.512(a)
Security deposit limit
During the first year of a lease you may not require a deposit of more than two months' rent. From the second year on, and during any renewal, the deposit may not be more than one month's rent.
- Once a tenant has been in possession for five years or more, a rent increase cannot come with a required increase in the deposit. 68 P.S. § 250.511a(d)
- These limits apply only to residential rentals, and a tenant's agreement to waive them is void. 68 P.S. § 250.511a(e), (f)
- Instead of holding the deposit in escrow, you may guarantee its return, less the cost of necessary repairs and with interest, with a bond from a bonding company authorized in Pennsylvania. 68 P.S. § 250.511c See Deposit account and interest on the Pennsylvania page
The Pennsylvania lease states the deposit and repeats the two-month limit for the first year, the one-month limit from the second year and the five-year rule.
Deposit return
Within 30 days after the lease ends or the tenant surrenders the home and you accept it, whichever comes first, give the tenant a written list of the damages you claim and pay back the deposit, with any unpaid interest, less the actual damages.
- You may also keep deposit money for unpaid rent or for the tenant's breach of another lease condition. 68 P.S. § 250.512(a)
- If you do not send the written list within the 30 days, you lose the right to keep any part of the deposit and the right to sue the tenant for damage to the home. 68 P.S. § 250.512(b)
- If you do not pay the balance within the 30 days, you can owe double the amount by which the deposit and interest exceed the actual damages, and you must prove the damages. 68 P.S. § 250.512(c)
- A tenant who does not give you a new address in writing when the lease ends or the home is surrendered releases you from liability under this section. 68 P.S. § 250.512(e)
- A tenant's waiver of these rules is void, and they apply only to residential leases. 68 P.S. § 250.512(d), (f)
- For each damage deduction, record the condition at move-in and move-out, describe what the tenant damaged, and retain dated photos and repair invoices or other evidence of the actual loss. This is practical evidence guidance: section 512 requires a written damages list and puts proof of actual damage on the landlord. Routine turnover work alone does not show damage caused by this tenant. 68 P.S. § 250.512(a), (c)
The lease repeats the 30-day list and payment rule, the loss of the right to withhold, double damages and the tenant's duty to give a new address in writing.
Deposit account and interest
After the second anniversary of the deposit, deposit money over $100 must be kept in an escrow account at a bank regulated by the Federal Reserve Board, the Federal Home Loan Bank Board, the Comptroller of the Currency or the Pennsylvania Department of Banking, and you must tell the tenant in writing the bank's name and address and the amount deposited.
- Do not rely on a noninterest-bearing account after the second anniversary: the Act mentions both kinds of account, but from the third year the deposit is returned together with interest, and the Act speaks of money required to be deposited in an interest-bearing escrow account. Of the interest earned you may keep 1% a year as your only administrative fee; the rest belongs to the tenant and is paid each year on the anniversary of the lease. 68 P.S. § 250.511b(a), (b) 68 P.S. § 250.511a(c)
- If you hold the one-month deposit in the third or a later year of a lease, or in a renewal after two years of tenancy, it is returned with interest when the lease ends or the home is surrendered and accepted. 68 P.S. § 250.511a(c)
- You may use a guarantee bond instead of an escrow account. 68 P.S. § 250.511c
Move-in condition
Partly readThe Landlord and Tenant Act does not require a move-in inspection, a condition checklist or photos. A written record signed at move-in still helps you prove damage under the 30-day deposit rule.
Landlord and Tenant Act of 1951
- If you keep deposit money for damage, you carry the burden of proving the actual damage the tenant caused. 68 P.S. § 250.512(c) See Deposit return on the Pennsylvania page
The lease records that the tenant accepts the home's condition at move-in, with a line for documented exceptions.
Questions
How much can I charge for a security deposit in Pennsylvania?
No more than two months' rent during the first year of a lease. From the second year on, including renewals, the deposit may not be more than one month's rent.
When do I have to return the deposit?
Within 30 days after the lease ends or the tenant surrenders the home and you accept it, whichever comes first. Send a written list of damages with the balance of the deposit and any unpaid interest.
Do I have to pay interest on a Pennsylvania security deposit?
After the second anniversary of the deposit, deposits over $100 go in an escrow account, and the Act points to an interest-bearing one: from the third year the deposit is returned with interest. You may keep interest equal to 1% a year as your fee, and the rest goes to the tenant each year on the lease anniversary.
Can I deduct repainting costs from a Pennsylvania security deposit?
Base a claim on actual damage the tenant caused, rather than charging automatically whenever you repaint between tenancies. Compare the recorded condition before and after the tenancy and keep evidence of the damage and repair cost. Section 512 requires a written damages list within 30 days and places the burden of proving actual damage on the landlord.