Security Deposit Return Deadlines & Deductions in Pennsylvania
At a glance
| Governing law | Landlord and Tenant Act §§ 511.1–511.3, 512 (68 P.S. §§ 250.511a–250.512) |
|---|---|
| Deadline to return the deposit | 30 days after lease termination or surrender and acceptance, whichever first occurs (§ 250.512(a)) |
| Itemized statement required? | Yes; written damage list within the same 30 days (§ 250.512(a)) |
| What can be deducted | Tenant-caused damage, unpaid rent, or breach of another lease condition (§ 250.512(a)) |
| Maximum deposit amount | Two months' rent in year one; one month thereafter; no increase after five years (§ 250.511a) |
| Interest on the deposit? | After the second anniversary of funds held in escrow; tenant receives interest less 1% annual administration (§§ 250.511a(c), 250.511b(b)–(c)) |
| Penalty for a late/bad-faith withholding | Late damage list forfeits withholding; late balance payment can mean double the improper withholding (§ 250.512(b)–(c)) |
| Separate account or bond required? | For deposits over $100 after the second anniversary: regulated-institution escrow or surety bond (§§ 250.511b(a), (c), 250.511c) |
Requirements one by one
The Landlord and Tenant Act uses internal §§ 511.1-512, cited here as 68 P.S. §§ 250.511a–250.512.
Return deadline and itemization
The 30-day period in 68 P.S. § 250.512(a) runs from lease termination or surrender and acceptance of the premises, whichever first occurs. The landlord must provide a written list of claimed damage and pay the difference between the deposit, including unpaid interest, and tenant-caused damage. The same subsection preserves withholding for unpaid rent or another lease breach.
Deposit cap and interest
Section 250.511a permits up to two months' rent in the first lease year and one month's rent afterward. After five years of possession, a rent increase does not permit a matching deposit increase. For funds covered by § 250.511b, the tenant receives interest annually after the second anniversary of the deposit, less the landlord's 1% annual administrative amount.
Account or bond
Section 250.511b(a) addresses deposits over $100 and requires an account at a regulated institution, plus written notice of the bank and amount held. Subsection (c) says the provisions of that section apply only after the deposit's second anniversary. Section 250.511c allows a qualifying guarantee bond instead of escrow.
Remedies
Under § 250.512(a)-(c), failing to provide the damage list within 30 days forfeits the right to withhold escrow funds or sue the tenant for premises damage. Under § 250.512(c), failing to pay the balance within 30 days makes the landlord liable for double the difference between the deposit and actual tenant-caused damage, as determined by a court.
What trips people up
Provide a new address in writing when the lease terminates or the landlord accepts surrender. Under § 250.512(e)-(f), failure to provide an address relieves the landlord of liability under that section.
A pending bill, PA HB 573 (2025–2026), would forbid calling a security deposit, including a pet deposit or fee, nonrefundable. It remains in committee; the proposal is not the current rule.
Common questions
Can the landlord add a deposit increase after I have rented for five years? No increase tied to a rent rise is required under § 250.511a(d) once the tenant has possessed the premises for at least five years.
Does the deposit section cover a commercial lease? No. Section 250.512(f) expressly limits its return and remedy rules to residential leaseholds.
Statutes and sources
- 68 P.S. § 250.511a (act § 511.1) — deposit cap and interest returned after extended tenancy. https://www.palegis.us/statutes/unconsolidated/law-information/view-statute?sessYr=1951&sessInd=0&actNum=0020.&smthLwInd=0&chpt=005.&subchpt=000.&sctn=011.&subsctn=001.&txtType=PDF (accessed 2026-10-07)
- 68 P.S. § 250.511b (act § 511.2) — account and interest rules, including the two-year application limit. https://www.palegis.us/statutes/unconsolidated/law-information/view-statute?sessYr=1951&sessInd=0&actNum=0020.&smthLwInd=0&chpt=005.&subchpt=000.&sctn=011.&subsctn=002.&txtType=PDF (accessed 2026-10-07)
- 68 P.S. § 250.511c (act § 511.3) — bond alternative. https://www.palegis.us/statutes/unconsolidated/law-information/view-statute?sessYr=1951&sessInd=0&actNum=0020.&smthLwInd=0&chpt=005.&subchpt=000.&sctn=011.&subsctn=003.&txtType=PDF (accessed 2026-10-07)
- 68 P.S. § 250.512 (act § 512) — return, accounting, remedies, forwarding address and residential scope. https://www.palegis.us/statutes/unconsolidated/law-information/view-statute?sessYr=1951&sessInd=0&actNum=0020.&smthLwInd=0&chpt=005.&subchpt=000.&sctn=012.&subsctn=000.&txtType=PDF (accessed 2026-10-07)
- PA HB 573 (2025–2026), introduced text and action history. https://www.palegis.us/legislation/bills/2025/hb573 (checked 2026-10-07)
Source links
Every statute quoted above, linked, with the date we checked it.
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