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Security Deposits

Pennsylvania strictly regulates security deposits. Follow these rules precisely — violations can result in double-damage liability.

Key Deposit Rules

2 months' rent
Year 1 Maximum
1 month's rent
Year 2+ Maximum
30 days
Return Deadline
Double damages
Late Return Penalty

Escrow Requirements

Based on 68 Pa. Stat. Ann. § 250.511b

Escrow Account Required

Security deposits must be held in a federally or state-regulated financial institution. The bank name and address must be provided to the tenant in writing.

Interest-Bearing After 2 Years

Deposits held > 2 years must be in an interest-bearing escrow account; tenant receives interest minus 1% admin fee

Penalty for Non-Compliance

If landlord fails to return deposit with itemized list within 30 days, tenant may recover double the deposit amount

Deductions Guide

Permissible Deductions

Unpaid rent through end of lease or re-rental date
Actual damages to the unit beyond normal wear and tear
Costs of cleaning beyond normal wear and tear
Unpaid utilities that were tenant responsibility
Breach of lease charges (e.g., early termination if lease permits)

Prohibited Deductions

Normal wear and tear (paint fading, carpet wear, minor scuffs)
Pre-existing damage documented at move-in
Repairs to bring the unit to a higher condition than move-in
Administrative fees not specified in the lease

Best Practices for Landlords

Document everything at move-in

Use a room-by-room checklist with photos/video. Have the tenant sign it. This is your proof of the unit's condition.

Document everything at move-out

Repeat the inspection at move-out with the same checklist. Photograph any damage. Compare to move-in condition.

Send itemized list within 30 days

Include actual receipts or estimates for every deduction. Vague descriptions ("damage to walls") are insufficient.

Return deposit via certified mail

Send the check and itemized list via certified mail to the tenant's forwarding address. Keep the return receipt.

Need Deposit Documentation?

Our attorney-drafted security deposit letters and inspection checklists protect you from double-damage liability.

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