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How much can a landlord deduct from a security deposit in Pennsylvania?

A plain-English guide for small landlords · Last reviewed Nov 5, 2026 against 68 P.S. § 250.511a (Act § 511.1), § 250.511b (Act § 511.2) and § 250.512 (Act § 512) of The Landlord and Tenant Act of 1951, as published on legis.state.pa.us

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.

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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):

Escrow, notice, interest, and bond

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:

Generally not a deposit claimMay support an actual-damages claim
Carpet worn thin in a hallway from years of normal foot trafficCarpet stained or destroyed by a pet the current tenant kept
Paint faded from sunlight and light furniture scuffsLarge holes, unauthorized paint left unrestored, or marker damage
A defect already noted on a dated move-in walkthroughA 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

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.

ItemHow it's figuredClaim
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 roomOrdinary 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

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

  1. Confirm whether the lease terminated or the tenant surrendered and you accepted the premises—start the 30-day clock from whichever happened first.
  2. Confirm the tenant gave a written forwarding address; if not, document your request and the failure (it affects § 250.512 liability).
  3. 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.
  4. Cut ordinary wear and anything already present at move-in; claim only actual tenant-caused damage you can prove.
  5. Mail or deliver the list with any refund (deposit + unpaid interest − claimed actual damages) within 30 days.
  6. 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).
  7. If the unit is in Philadelphia, also check § 9-804(4) installment and private-action rules.

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Guides for other states

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

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