What is the security deposit limit in Pennsylvania?
Under 68 P.S. § 250.511a, Pennsylvania landlords may collect a security deposit of up to two months' rent during the first year of tenancy. Beginning with the second year of occupancy and upon any subsequent lease renewal, the maximum deposit drops to one month's rent; any excess collected must be returned to the tenant. If the tenant has resided in the unit for more than two years and the deposit exceeds $100, the landlord must deposit the funds in an interest-bearing escrow account and provide the tenant with the bank name and address. After the third year, the tenant is entitled to annual interest less 1% retained by the landlord for administrative costs. Once a tenant has resided for five or more years, the security deposit amount is frozen — it may not be increased even if rent increases. Landlords must return the deposit within 30 days of lease termination, along with an itemized written statement of deductions; failure to comply within 30 days forfeits the right to make any deductions.