Pennsylvania security deposit rules.
The Pennsylvania rules for residential security deposits in plain English: how much can be charged, how fast it comes back, whether interest is owed, and what catches operators out.
Last reviewed · Statute: 68 P.S. §§ 250.511a–250.512 (Landlord and Tenant Act of 1951) · Not legal advice
How much can be charged
Two months’ rent for year one of any tenancy; one month for year two and beyond.
When it has to come back
30 days from termination, with itemised deductions and forwarding address.
Interest
If the deposit is held more than two years, interest must be paid annually thereafter at the rate of a Pennsylvania savings account, less a 1% admin fee.
Where the money has to sit
For deposits over $100, must be held in an escrow account at a regulated Pennsylvania financial institution; the institution’s name must be disclosed.
What catches operators out
- The 2-year interest rule is the trigger; many landlords miss it on multi-year tenants.
- Cap reduction at year 2 means landlords technically owe a refund at end of year 1.
What this looks like with Standby in Pennsylvania.
When a resident takes a Standby certificate there is no cash deposit to hold, so the cap, the return deadline and the interest rules above have nothing to attach to. You are covered up to the full deposit and draw on it when you need to.
When a resident pays cash instead, Standby handles that deposit under your lease and Pennsylvania law, so your team is not tracking return deadlines by hand.
This page summarises the most common single-family and multifamily residential rule in Pennsylvania. Furnished units, senior leases, mobile-home tenancies and short-term rentals can differ, and city ordinances may override the state default. Check the statute before relying on a figure for a specific lease.