A cap that shrinks over time
Pennsylvania's deposit rules sit in Article V-A of the Landlord and Tenant Act of 1951 (68 P.S. §§ 250.511a–250.512). Section 511.1 limits the deposit to two months' rent during the first year of a lease. In the second and later years, the landlord may hold no more than one month's rent and must return the excess. After you have been in possession for five years or more, a rent increase cannot be used to raise the deposit you already paid. A lease clause waiving these protections is void.
Escrow and interest after the second anniversary
Section 511.2 applies once a deposit over $100 has been held past the second anniversary of the lease. The money must go into an escrow account at a federally or state regulated institution, and you must be told in writing the name and address of the institution and the amount deposited. The landlord may keep 1% per year of the deposit as an administrative fee; the rest of the interest belongs to you and is paid yearly on the lease anniversary. A landlord may instead post a bond (§ 511.3). In the first two years no interest is owed.
The 30-day list of damages
Section 512(a) requires the landlord to give you a written list of any damages charged against the deposit, with payment of the difference, within 30 days of the termination of the lease or of the surrender and acceptance of the premises, whichever happens first. Section 512(b) is the teeth: a landlord who does not provide the list within 30 days forfeits all rights to withhold any part of the deposit, and also the right to sue you for damage to the premises.
Double damages
If the landlord does not pay the difference between the deposit (plus any interest) and the actual damages within 30 days, § 512(c) makes the landlord liable for double the amount by which the deposit exceeds the damages, and the landlord carries the burden of proving the damages. Our calculator applies this rule.
Steps to recover a Pennsylvania deposit
- Check your lease year: from year two, anything above one month's rent should already have come back to you.
- Photograph the unit at move-out and keep any move-in records.
- Give your new address in writing, and keep a copy.
- Mark day 30 after the lease ends or the landlord accepts surrender.
- If no list arrives, or the charges are improper, send a demand letter citing 68 P.S. § 250.512, then file a claim in small claims court.
Neighboring states
Next door, New Jersey requires interest from day one and New York caps deposits at one month. Ohio has no cap at all.
Frequently asked questions
How much can a landlord charge for a security deposit in Pennsylvania?
Up to two months' rent in the first year of the lease and up to one month's rent in the second and later years (68 P.S. § 250.511a).
How long does a Pennsylvania landlord have to return a deposit?
30 days after the lease ends or the landlord accepts surrender of the unit, whichever is first, along with a written list of any damages (§ 250.512(a)).
Do Pennsylvania landlords pay interest on deposits?
Only after the second anniversary of the lease, on deposits over $100. The money goes into escrow and the interest is paid to you yearly, less a 1% administrative fee for the landlord (§ 250.511b).
What if the landlord never sends a list of damages?
The landlord forfeits the right to keep any part of the deposit and the right to sue you for damage to the premises (§ 250.512(b)).
What is the penalty for wrongfully keeping a deposit in Pennsylvania?
Double the amount by which the deposit plus interest exceeds the actual damages (§ 250.512(c)), but only if you gave your new address in writing.
Sources
Last reviewed Oct 17, 2026. Read how we verify. Found an error? Tell us.