How much can a landlord deduct from a security deposit in Pennsylvania?
Short answer: Pennsylvania does not set a fixed dollar cap on how much of a residential security deposit you can keep for damage. Within 30 days after the lease ends or the tenant surrenders and you accept the premises—whichever happens first—you must give a written list of damages you claim the tenant caused and pay back the difference between the escrow (including any unpaid interest) and those actual damages.
Miss the written list and you forfeit the right to withhold any of the deposit and to sue for premises damage. Fail to pay the balance due within 30 days and you can owe double the amount wrongfully withheld. The tenant must give you a new address in writing, or you are relieved of liability under § 250.512.
Do the math in 2 minutes: the free Kitwright Security Deposit Deduction Calculator prorates replaced items for wear and tear, totals your deductions, estimates the Pennsylvania 30-day date, and prints an itemized statement. No sign-up, and nothing you type leaves your browser.
Who this guide covers
Sections 511.1, 511.2, 511.3 and 512 of The Landlord and Tenant Act of 1951 (codified at 68 P.S. §§ 250.511a–250.512) apply to residential leaseholds, not commercial ones. Attempted waivers of the deposit-cap and return sections by a tenant are void and unenforceable. Philadelphia units may also fall under City Code Chapter 9-800 (see the Philadelphia note below).
How much deposit you can collect (caps)
Under 68 P.S. § 250.511a (Act § 511.1):
- First year: you may not require more than two months' rent to be deposited in escrow for damages and/or default in rent.
- Second and later years / renewals: the amount required may not exceed one month's rent.
- After five years in possession, a rent increase does not require a matching increase in the security deposit.
- Third year and later: if you still require the one-month escrow, that escrow plus interest is returned under §§ 511.2 and 512 when the lease ends or the premises are surrendered and accepted.
Escrow, notice, interest, and bond
- Escrow for deposits over $100 (68 P.S. § 250.511b / Act § 511.2): funds over one hundred dollars deposited to secure a residential rental agreement must be placed in an escrow account at an institution regulated by the Federal Reserve Board, the Federal Home Loan Bank Board, the Comptroller of the Currency, or the Pennsylvania Department of Banking. When you deposit the funds (interest-bearing or noninterest-bearing), give each tenant written notice of the banking institution's name and address and the amount deposited.
- Interest timing: the provisions of § 250.511b apply only after the second anniversary of the deposit of escrow funds. When money is required to be in an interest-bearing escrow savings account in accordance with § 250.511a, you may retain one percent per annum as an administrative fee; the balance of interest belongs to the tenant and is paid annually on the anniversary of the lease start.
- Bond alternative (68 P.S. § 250.511c / Act § 511.3): instead of escrowing, you may guarantee return of the escrow (less necessary repairs, including interest) with a sufficient guarantee bond from a bonding company authorized to do business in Pennsylvania.
What you can (and can't) deduct
68 P.S. § 250.512 regulates return of improperly held escrow. It speaks of actual damages to the leasehold premises caused by the tenant. It does not set a statewide fixed dollar deduction cap, and it does not publish a wear-and-tear checklist. In practice:
- Tenant-caused damage: you may claim actual damages you can prove the tenant caused. The burden of proof is on the landlord (§ 250.512(c)).
- Unpaid rent / other lease breach: nothing in § 512 precludes you from refusing to return the escrow (including unpaid interest) for nonpayment of rent or for breach of any other lease condition (§ 250.512(a)).
- Ordinary wear: aging from intended occupancy is generally not "damage caused by the tenant." Charge for deterioration beyond ordinary use, document move-in condition, and keep invoices, receipts, and photos.
| Generally not a deposit claim | May support an actual-damages claim |
|---|---|
| Carpet worn thin in a hallway from years of normal foot traffic | Carpet stained or destroyed by a pet the current tenant kept |
| Paint faded from sunlight and light furniture scuffs | Large holes, unauthorized paint left unrestored, or marker damage |
| A defect already noted on a dated move-in walkthrough | A new broken window, missing appliance part, or similar tenant-caused damage |
Illustrative only—§ 250.512 does not list these examples. Keep invoices, receipts and dated photos. If the tenant sues, expect to justify each dollar.
The 30-day written list and refund
- Deadline: within 30 days of termination of a lease or upon surrender and acceptance of the leasehold premises, whichever first occurs (68 P.S. § 250.512(a)).
- What to send: a written list of any damages to the premises for which you claim the tenant is liable, accompanied by payment of the difference between the sum deposited in escrow (including any unpaid interest) and the actual amount of damages caused by the tenant.
- What the statute does not require in the list: § 512 does not expressly require estimates, invoices, or receipts to accompany the list (unlike some other states). If the claim is disputed, though, you still carry the burden of proving actual damages—so attach invoices, estimates, and photos anyway.
- Forwarding address: if the tenant fails to give you a new address in writing at termination or surrender and acceptance, you are relieved of liability under this section (§ 250.512(e)). Ask for it in writing at move-out and keep a copy.
Make the statement: enter each line in the free calculator, then print the itemized statement and attach your invoices, estimates and photos with the written damages list and any refund check.
Hypothetical worked example
Hypothetical example (made-up numbers for illustration). A tenant with a $1,800 deposit (one month's rent in year two) vacates and surrenders the unit on October 31, 2026, gives a written forwarding address, and owes no rent. You claim two repair items.
| Item | How it's figured | Claim |
|---|---|---|
| Bedroom carpet ruined by pet urine (4 years old, expected to last 8, $1,000 to replace with similar quality) | Charge only the life it had left: $1,000 × (8 − 4) ÷ 8 | $500.00 |
| Patching and repainting a wall with many large anchor holes ($225 painter's invoice) | Invoice amount | $225.00 |
| Paint faded and lightly scuffed in the living room | Ordinary wear — not claimed | $0.00 |
| Total claimed as actual damages | $725.00 | |
| Balance returned with the written list ($1,800 − $725), plus any unpaid interest due | $1,075.00+ | |
Deliver the written damages list and the $1,075+ refund by November 30, 2026—the 30th day after surrender and acceptance (or after lease termination, if that came first). Pennsylvania's statute does not prescribe a carpet-proration formula; charging only remaining useful life is one way to keep a claim defensible. Keep the invoice, receipts, and photos with your copy of the list.
Run your own numbers: the free calculator applies the same proration approach and works out return-by dates for Pennsylvania and 50 other jurisdictions (49 states + DC).
Penalties
- No written list within 30 days: you forfeit all rights to withhold any portion of the escrow (including unpaid interest) and to bring suit against the tenant for damages to the leasehold premises (68 P.S. § 250.512(b)).
- Failure to pay the difference within 30 days: liable in assumpsit for double the amount by which the escrow (including unpaid interest) exceeds the actual damages as determined by a court of record or not of record with civil jurisdiction. The burden of proving actual damages is on the landlord (§ 250.512(c)).
- Waivers: any attempted waiver of § 250.512 by a tenant is void and unenforceable (§ 250.512(d)).
- Where disputes go: magisterial district judges hear civil claims in assumpsit and trespass where the sum demanded does not exceed $12,000, exclusive of interest and costs (42 Pa.C.S. § 1515(a)(3)). Larger claims proceed in the court of common pleas. Philadelphia often uses Municipal Court for landlord-tenant cases.
Philadelphia note
Philadelphia properties may also be covered by City Code Chapter 9-800 (Landlord and Tenant). See the City's § 9-804 Unfair Rental Practices (American Legal Publishing hosting of the Philadelphia Code) and the Fair Housing Commission unfair-rental-practices page. At a high level, § 9-804(4) (as amended by Bill No. 250044-A, effective December 2, 2025) bars charging a security deposit above the amounts permitted under 68 P.S. § 250.511a; requires many landlords who charge a first-year deposit above one month's rent to offer the tenant a choice of lump sum or installments (one month up front, remainder in three equal monthly payments); exempts owners/managers of two or fewer rental units from that installment rule; and provides a private right of action for deposit violations (actual damages or, at the plaintiff's election, statutory damages equal to one month's rent, plus possible attorney's fees and costs).
This guide does not restate the full Philadelphia Code. Check the city ordinance and the Fair Housing Commission pages for Philadelphia units. Local rules can add obligations beyond state law; when both apply, follow the stricter rules that cover your property.
Quick checklist before you send the refund or list
- Confirm whether the lease terminated or the tenant surrendered and you accepted the premises—start the 30-day clock from whichever happened first.
- Confirm the tenant gave a written forwarding address; if not, document your request and the failure (it affects § 250.512 liability).
- Prepare a written list of damages you claim the tenant caused; attach invoices/estimates/photos even though the statute does not expressly require receipts with the list.
- Cut ordinary wear and anything already present at move-in; claim only actual tenant-caused damage you can prove.
- Mail or deliver the list with any refund (deposit + unpaid interest − claimed actual damages) within 30 days.
- If the deposit has been held more than two years, calendar interest under § 250.511b (1% admin fee to you; balance to the tenant annually).
- If the unit is in Philadelphia, also check § 9-804(4) installment and private-action rules.
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Guides for other states
- Arizona: how much can a landlord deduct from a security deposit? (14 business-day itemized list after possession and demand, 1.5-month cap, nonrefundable fees in writing, move-out inspection notice, twice-the-amount damages)
- California: how much can a landlord deduct from a security deposit? (21-day itemized statement, receipts and photos, 2026 changes)
- Florida: how much can a landlord deduct from a security deposit? (15-day full return or 30-day claim notice, tenant 15-day objection, itemized claim)
- Georgia: how much can a landlord deduct from a security deposit? (30-day return after possession, move-in/out damage lists, two-month cap, escrow or bond, treble damages for wrongful withholding)
- Illinois: how much can a landlord deduct from a security deposit? (30-day itemized statement, 45-day full return if none, double-deposit penalty)
- New Jersey: how much can a landlord deduct from a security deposit? (30-day itemized return by personal delivery or registered/certified mail, 1.5-month cap, interest-bearing NJ account with written notice, double damages)
- New York: how much can a landlord deduct from a security deposit? (14-day refund, one-month cap, itemized list, forfeiture if late)
- North Carolina: how much can a landlord deduct from a security deposit? (30-day itemized accounting (60-day final if needed), statutory deposit caps, trust account or bond, willful noncompliance voids retention)
- Ohio: how much can a landlord deduct from a security deposit? (30-day itemized written notice + refund, written forwarding address, wrongful withholding doubled + attorney fees)
- Texas: how much can a landlord deduct from a security deposit? (30-day refund, forwarding address, itemized list, bad-faith penalties)
- Washington: how much can a landlord deduct from a security deposit? (move-in checklist required, 30-day full and specific statement, up to 2x deposit)
For every other state's return deadline and statute, see the 51-jurisdiction table in the free deposit calculator.
Also for landlords: Do I need to send a 1099 to my contractor? (IRS rules for 2026 payments)
FAQ
How much can a landlord deduct from a security deposit in Pennsylvania?
The Landlord and Tenant Act of 1951 does not set a fixed dollar cap on damage deductions. Under 68 P.S. § 250.512 (Act § 512), within 30 days of lease termination or surrender and acceptance of the premises (whichever occurs first), the landlord must give a written list of damages for which the tenant is claimed liable and pay the difference between the escrow (including unpaid interest) and the actual damages caused by the tenant. The landlord may also refuse to return the escrow for unpaid rent or other lease breaches. The landlord has the burden of proving actual damages.
How long does a Pennsylvania landlord have to return the deposit or send the damages list?
Within 30 days of termination of the lease or upon surrender and acceptance of the leasehold premises, whichever first occurs (68 P.S. § 250.512(a)). Delivery of the written damages list must be accompanied by payment of any remaining balance of the deposit (plus unpaid interest).
What happens if a Pennsylvania landlord misses the 30-day deadline?
Failing to provide the written list within 30 days forfeits all rights to withhold any of the escrow (including unpaid interest) and to sue the tenant for damages to the premises (68 P.S. § 250.512(b)). Separately, failing to pay the tenant the difference between the deposit (plus unpaid interest) and actual damages within 30 days makes the landlord liable in assumpsit for double the amount by which the deposit plus unpaid interest exceeds the actual damages as determined by a court with civil jurisdiction (68 P.S. § 250.512(c)).
How much security deposit can a Pennsylvania landlord collect?
For residential rentals, no more than two months' rent may be required during the first year of a lease, and no more than one month's rent during the second and subsequent years or any renewal (68 P.S. § 250.511a). After a tenant has been in possession five years or more, a rent increase does not require a matching increase in the security deposit. Attempted waivers are void.
Do Pennsylvania landlords have to pay interest on security deposits?
Under 68 P.S. § 250.511b, funds over $100 must be held in an escrow account at a regulated institution, with written notice to the tenant of the bank's name and address and the amount deposited. The interest rules of § 250.511b apply only after the second anniversary of the deposit. When money is required to be in an interest-bearing escrow account in accordance with § 250.511a, the landlord may keep one percent per annum as an administrative fee; the balance of interest belongs to the tenant and is paid annually on the lease anniversary. A bond may be used in lieu of escrowing under § 250.511c.
Does the tenant have to give a forwarding address?
Yes, for the statutory remedies. Failure of the tenant to provide the landlord with a new address in writing upon termination of the lease or upon surrender and acceptance of the premises relieves the landlord from liability under 68 P.S. § 250.512 (see § 250.512(e)).
What counts as deductible damage in Pennsylvania?
Section 512 speaks of "actual damages to the leasehold premises caused by the tenant." It does not publish a wear-and-tear checklist. Charge only for tenant-caused damage you can prove; the burden of proof is on the landlord. Ordinary aging from intended use is generally not tenant-caused damage. Keep invoices, receipts, and dated photos.
Where do Pennsylvania deposit disputes go?
Magisterial district judges have jurisdiction over civil claims in assumpsit and trespass where the sum demanded does not exceed $12,000, exclusive of interest and costs (42 Pa.C.S. § 1515(a)(3)). Larger claims go to the court of common pleas. Philadelphia uses Municipal Court for many landlord-tenant matters.
Do Philadelphia landlords have extra deposit rules?
Yes. Philadelphia Code § 9-804(4) incorporates the state deposit caps and, for many landlords (those operating more than two rental units), requires that a first-year deposit above one month's rent be offered as a lump sum or in installments (one month up front, remainder in three equal monthly payments). Check the City Code and Fair Housing Commission pages; this guide covers state law primarily.
Is this legal advice?
No. This page is general information based on The Landlord and Tenant Act of 1951 as published on legis.state.pa.us (68 P.S. §§ 250.511a–250.512), 42 Pa.C.S. § 1515, the Pennsylvania Attorney General consumer guide, and official Philadelphia sources, as of November 2026. Read the statute or talk to a Pennsylvania attorney before you withhold money.
Sources
- The Landlord and Tenant Act of 1951 (Act of Apr. 6, 1951, P.L. 69, No. 20), official text: legis.state.pa.us
- Article V (Recovery of Possession) chapter index, including §§ 511.1–512: legis.state.pa.us
- Act § 511.1 / 68 P.S. § 250.511a (escrow funds limited — deposit caps): legis.state.pa.us
- Act § 511.2 / 68 P.S. § 250.511b (interest on escrow held more than two years; bank notice): legis.state.pa.us
- Act § 511.3 / 68 P.S. § 250.511c (bond in lieu of escrowing): legis.state.pa.us
- Act § 512 / 68 P.S. § 250.512 (30-day written damages list, refund, forfeiture, double liability): legis.state.pa.us
- 42 Pa.C.S. § 1515 (magisterial district judge civil jurisdiction — $12,000 exclusive of interest and costs): legis.state.pa.us
- Pennsylvania Office of Attorney General, Consumer Guide to Tenant and Landlord Rights (cites 68 P.S. §§ 250.511a–250.512)
- Philadelphia Code § 9-804 (Unfair Rental Practices), security-deposit subsection (4): codelibrary.amlegal.com
- City of Philadelphia Fair Housing Commission, Unfair rental practices