Security Deposit Demand Letter - Pennsylvania

SECURITY DEPOSIT DEMAND LETTER

COMMONWEALTH OF PENNSYLVANIA

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL

[__/__/____]

[LANDLORD/PROPERTY MANAGER FULL NAME]
[LANDLORD/PROPERTY MANAGER ADDRESS]
[CITY, STATE ZIP]

Re: FORMAL DEMAND FOR RETURN OF SECURITY DEPOSIT PURSUANT TO 68 P.S. § 250.512
Former Tenant(s): [TENANT FULL NAME(S)]
Rental Property Address: [RENTAL PROPERTY STREET ADDRESS, CITY, PA ZIP]
Lease Commencement Date: [__/__/____]
Date Possession Surrendered: [__/__/____]
Security Deposit Amount Paid: $[________________________________]
Days Since Possession Surrendered: [____]

Dear [LANDLORD/PROPERTY MANAGER NAME]:

This law firm represents [TENANT FULL NAME] ("Tenant") in connection with your retention of Tenant's security deposit following the tenancy at the above-referenced property. Pennsylvania law imposes non-waivable duties concerning deposit limits, escrow, itemization, and return. Any statutory recovery must be calculated under the facts and the remedy actually provided by 68 P.S. § 250.512(c).

This letter constitutes formal written demand for immediate compliance with 68 P.S. § 250.512. Govern yourself accordingly.

I. PENNSYLVANIA LANDLORD AND TENANT ACT — GOVERNING LAW

A. Statutory Framework

The Pennsylvania Landlord and Tenant Act of 1951 addresses residential security deposits in 68 P.S. §§ 250.511a, 250.511b, 250.511c, and 250.512. Sections 250.511a and 250.512 expressly make an attempted tenant waiver void and unenforceable.

B. Deposit Cap Requirements — 68 P.S. § 250.511a

Pennsylvania law strictly limits the amount a landlord may collect as security:

Section 250.511a(b) provides that during the second and subsequent lease years, and during renewals, the amount required to be deposited may not exceed one month's rent. The section does not create a separate 30-day anniversary deadline for returning an excess amount.

C. Escrow and Interest Requirements — 68 P.S. § 250.511b

Except where the landlord uses the statutory bond alternative in 68 P.S. § 250.511c, deposit funds over $100 covered by § 250.511b(a) must be placed in an escrow account at an institution regulated by one of the federal regulators named in the statute or by the Pennsylvania Department of Banking. Upon deposit, the landlord must notify the tenant in writing of:

1. The name and address of the banking institution; and
2. The amount of the deposit held.

Interest after the second anniversary: Section 250.511b applies after the second anniversary of the escrow deposit. When money is required to be in an interest-bearing escrow savings account, the tenant receives the interest annually on the lease anniversary, less the landlord's statutory one percent (1%) per annum administrative amount.

Failure to comply with these escrow requirements is an independent violation of the Act.

D. Return Deadline and Itemization Requirement — 68 P.S. § 250.512

A landlord must act within thirty (30) days after termination of the lease or surrender and acceptance of the premises, whichever occurs first. If the landlord claims tenant-caused damage, the written damage list must accompany payment of the balance between the escrowed sum (including unpaid interest) and the actual tenant-caused damage.

Critical Rule: If the landlord fails to provide the written list within 30 days, the landlord forfeits the right to withhold any portion of the escrow and may not sue the tenant for damages to the leasehold premises. 68 P.S. § 250.512(b). The subsection does not state a broader bar against unrelated claims.

Forwarding-address condition: Section 250.512(e) relieves the landlord of liability under that section if the tenant fails to provide a new address in writing upon termination or surrender and acceptance. The statute does not prescribe personal service or certified-mail delivery for the itemization.

E. Double-Liability Remedy — 68 P.S. § 250.512(c)

If the landlord fails to pay the required difference within 30 days, § 250.512(c) makes the landlord liable for double the amount by which the escrowed sum, including unpaid interest, exceeds actual tenant-caused damage. That double amount is the statutory recovery, not the deposit principal plus an additional two-times penalty. Section 250.512 contains no attorney-fee remedy.

F. Amounts Addressed by Section 250.512

Section 250.512(a) addresses:

• Unpaid rent
• Breach of another lease condition
• Actual damage to the leasehold premises caused by the tenant

The landlord bears the burden of proving actual tenant-caused damage under § 250.512(c). Record the age, prior condition, expected useful life, cause, and repair evidence for every disputed item rather than treating a generic example as automatically chargeable or nonchargeable.

II. PHILADELPHIA-SPECIFIC REQUIREMENTS

(Complete this Section if the rental property is located in the City of Philadelphia)

☐ Applicable — Property is located in Philadelphia

The City's current rental-property page states that a Rental License is required to rent out a property, that a current Certificate of Rental Suitability must be given to a new tenant, and that owners must comply with lead-safety requirements. For property built before March 1978, the City directs owners to submit lead certification and inspection reports to the Department of Public Health.

Use the following only as issue-spotting and evidence checks; this state-law demand does not assume that a licensing, lead, discrimination, or code issue automatically offsets a security-deposit claim:

☐ Current Rental License status checked

☐ Certificate of Rental Suitability checked

☐ Lead certification / exemption records checked

☐ L&I license, permit, and violation history checked

☐ Separate local claim and remedy researched against current authority, if asserted

☐ Not Applicable — Property is outside Philadelphia

III. FACTUAL BACKGROUND

A. Tenancy Information

B. Escrow Disclosure

☐ If § 250.511b applies, landlord provided the escrow institution's name and address
☐ Landlord failed to provide required escrow bank disclosure — independent violation
☐ Tenancy exceeded two years; interest-bearing account required
☐ Deposit exceeded $100; escrow requirements apply unless the landlord used the statutory bond alternative

Bank/Institution Where Deposit Was (or Should Have Been) Held:
[________________________________]

C. Move-Out Circumstances

Notice Provided:

• Date Written Notice Given to Landlord: [__/__/____]
• Notice Period Given: [____] days
• Method of Delivery: ☐ Hand-delivered ☐ Certified mail ☐ Email ☐ Other: [____]

Forwarding Address:

• Date Forwarding Address Provided to Landlord: [__/__/____]
• Method: ☐ Written letter ☐ Certified mail ☐ Email
• Forwarding Address Provided: [________________________________]

Keys/Possession Surrendered:

• Date Keys Returned or Locks Surrendered: [__/__/____]
• Method: ☐ In person to landlord ☐ Dropped in mailbox/slot ☐ Left on counter per landlord instruction
• Witness to surrender: [________________________________]

Move-Out Inspection:
☐ Tenant requested joint move-out inspection
☐ Joint inspection conducted on [__/__/____]
☐ Landlord refused or failed to schedule inspection
☐ No inspection offered or conducted

D. Condition of Premises at Move-Out

☐ Premises left in clean condition, substantially the same as at commencement of tenancy, reasonable wear and tear excepted
☐ Professional cleaning performed by [________________________________] on [__/__/____]
☐ All personal property removed
☐ No damage beyond normal wear and tear
☐ Photographic documentation taken at move-out on [__/__/____]
☐ Video walkthrough recorded at move-out

IV. LANDLORD'S VIOLATIONS OF 68 P.S. § 250.512

You have violated Pennsylvania law in the following respects:

☐ Failure to Return Deposit Within 30 Days: The earlier statutory trigger was ☐ lease termination on [__/__/____] ☐ surrender and acceptance on [__/__/____]. The 30-day deadline expired on [__/__/____], and no required balance was paid.

☐ Failure to Provide Written List Within 30 Days: You have failed to provide the written list required by 68 P.S. § 250.512(a). Under subsection (b), this failure forfeits the right to withhold any portion of the escrow and bars a suit against our Client for damages to the leasehold premises.

☐ Return of Deposit Without Required Written List: You returned only $[________________________________] of the $[________________________________] deposit on [__/__/____] without providing the written damage list required by 68 P.S. § 250.512(a), triggering the consequence stated in subsection (b).

☐ Written List Disputed: The list provided on [__/__/____] is disputed because:
☐ It does not explain how the amount withheld was calculated
☐ It includes deterioration consistent with age or ordinary use
☐ It includes pre-existing conditions documented at move-in
☐ The claimed amount is not supported by repair evidence
☐ The claimed condition was not caused by the tenant: [________________________________]

☐ Excessive Security Deposit Collected: You collected $[________________________________] at the commencement of tenancy, which exceeds the statutory two-month limit of $[________________________________] (two times the monthly rent of $[________________________________]) in violation of 68 P.S. § 250.511a.

☐ Excess Deposit During Second or Later Year: During the second or a subsequent lease year, you continued to require more than one month's rent as a deposit, contrary to 68 P.S. § 250.511a(b).

☐ Failure to Use Escrow or Bond Alternative: The covered deposit exceeded $100, and you neither used a compliant regulated escrow account with the required written disclosure nor established the bond alternative authorized by 68 P.S. § 250.511c.

☐ Failure to Pay Annual Interest: Section 250.511b applied after the second anniversary of the escrow deposit, but you failed to pay the tenant annually the balance of interest after the statutory one-percent administrative amount.

V. DISPUTED DAMAGE AND CAUSATION RECORD

Section 250.512(c) places the burden of proving actual tenant-caused damage on the landlord. Use this section to document the facts for each disputed deduction; the form does not predetermine whether a condition is ordinary deterioration, tenant-caused damage, a lease breach, or a reasonable repair cost.

☐ Move-in condition evidence reviewed

☐ Move-out condition evidence reviewed

☐ Age and expected useful life of the item recorded

☐ Prior repairs, deferred maintenance, leaks, or building conditions recorded

☐ Tenant causation disputed

☐ Repair invoice, receipt, estimate, or other cost support requested

☐ Other causation or valuation issue: [________________________________]

The following deductions are disputed:

VI. INTEREST CALCULATION (TENANCIES EXCEEDING TWO YEARS)

(Complete if tenancy exceeded two years and landlord failed to pay annual interest)

Note: Section 250.511b gives the tenant the balance of interest actually paid on the escrow account after the landlord's one-percent annual administrative amount. Do not substitute an assumed rate without a separately verified basis.

VII. DAMAGES AND DEMAND

A. Security Deposit Accounting

B. Statutory Double-Liability Calculation — 68 P.S. § 250.512(c)

Note: This is a potential-claim calculation. Section 250.512(c) places the burden of proving actual tenant-caused damage on the landlord and calls for the court with jurisdiction to determine that damage.

C. Total Demand

VIII. EVIDENCE IN OUR CLIENT'S POSSESSION

☐ Original signed lease agreement and all addenda
☐ Receipt or cancelled check for security deposit payment
☐ Written acknowledgment of escrow account (or absence thereof)
☐ Move-in condition checklist or inspection report
☐ Photographs of premises at move-in (dated [__/__/____])
☐ Photographs of premises at move-out (dated [__/__/____])
☐ Video walkthrough at move-out
☐ Written notice to vacate with proof of delivery
☐ Certified mail receipt and return card confirming delivery of forwarding address
☐ Proof of professional cleaning
☐ Correspondence with landlord regarding condition of premises
☐ Landlord's itemized statement (if provided)
☐ Witness statements regarding condition of premises at move-out
☐ Utility final bills confirming service through move-out date
☐ Philadelphia rental license records (if applicable)
☐ Other: [________________________________]

IX. FORMAL DEMAND

We hereby demand that you remit full payment within fourteen (14) days of the date of this letter as follows:

Total Amount Due: $[________________________________]

Payment must be made by certified check or money order, made payable to [TENANT NAME], and sent to:

[LAW FIRM NAME]
[ADDRESS]
[CITY, PA ZIP]

Re: [TENANT NAME] — Security Deposit

X. CONSEQUENCES OF NON-COMPLIANCE

If you fail to comply with this demand within fourteen (14) days, our Client is prepared to:

1. File in Magisterial District Court (MDJ): Subject to current venue and procedural rules, 42 Pa.C.S. § 1515(a)(3) gives an MDJ jurisdiction over listed civil claims when the sum demanded does not exceed $12,000, exclusive of interest and costs. Use the official UJS judge search and verify current filing requirements: https://www.pacourts.us/courts/minor-courts/magisterial-district-judges

2. File in Court of Common Pleas: If the claim or requested relief is outside MDJ jurisdiction, evaluate filing in the appropriate Court of Common Pleas under current jurisdiction, venue, and procedural rules.

3. Seek the Statutory Double Amount: Request twice the amount by which the escrowed sum, including unpaid interest, exceeds actual tenant-caused damage under 68 P.S. § 250.512(c).

4. Evaluate an Agency Complaint: Confirm the current complaint process and jurisdiction before contacting a consumer-protection, banking, licensing, housing, or fair-housing agency.

5. Judgment Enforcement: If a judgment is obtained, identify a lawful enforcement method only after reviewing current exemptions, execution rules, and any limits specific to the judgment and debtor.

XI. RESERVATION OF RIGHTS

This letter is written without prejudice to rights and remedies available under the Pennsylvania Landlord and Tenant Act and any other separately verified law. Our Client does not waive any claim, defense, or right by sending this demand or participating in negotiations.

Respectfully submitted,

[LAW FIRM NAME]

By: _________________________________
[ATTORNEY NAME]
Pennsylvania Attorney ID No. [________________________________]
[ADDRESS]
[CITY, PA ZIP]
[TELEPHONE]
[EMAIL]

Attorneys for [TENANT FULL NAME]

ENCLOSURES:
☐ Copy of lease agreement
☐ Copy of security deposit receipt/cancelled check
☐ Move-in/move-out photographs (labeled and dated)
☐ Copy of written notice to vacate
☐ Certified mail tracking and return receipt confirmation
☐ Copy of forwarding address notification
☐ Copy of landlord's itemized statement (if any)
☐ Cleaning receipts
☐ Interest calculation worksheet
☐ Authorization to represent (kept in file)

cc: [TENANT FULL NAME]
[PROPERTY MANAGEMENT COMPANY, if applicable]
[PROPERTY OWNER OF RECORD, if different from addressee]
Client File

PENNSYLVANIA SECURITY DEPOSIT QUICK REFERENCE

PENNSYLVANIA PRACTICE NOTES FOR ATTORNEYS

☐ Statutory Double Amount: Section 250.512(c), not subsection (e), supplies the double-liability remedy. Do not add the deposit principal again on top of that doubled amount.

☐ The 30-Day Clock: The clock runs from lease termination or surrender and acceptance, whichever occurs first. Document both dates.

☐ Forwarding Address Condition: Section 250.512(e) relieves the landlord of liability under that section if the tenant fails to provide a new address in writing. Providing it with delivery proof is prudent, but the address does not start the statutory clock.

☐ Escrow Bank Disclosure: If the landlord never disclosed the escrow bank name/address, this is an independent violation supporting the overall failure narrative.

☐ Interest Claims: Section 250.511b applies after the second anniversary of the escrow deposit. Calculate from account evidence; the landlord receives a one-percent annual administrative amount and the tenant receives the balance of interest paid.

☐ Philadelphia-Specific: Check the City's current Rental License, Certificate of Rental Suitability, lead-safety, and property-history records. Plead a separate local claim or remedy only after verifying its current authority and elements.

☐ MDJ Venue: Verify current venue rules and the correct court through the official UJS judge search rather than assuming the property or tenant address always controls.

☐ Lease Waiver Clauses Are Void: Any lease provision purporting to waive the tenant's rights under 68 P.S. § 250.512 is void and unenforceable as against public policy.

SOURCES AND REFERENCES

• Pennsylvania Landlord and Tenant Act of 1951, current compiled Act 20 PDF (Sections 511.1-512): https://www.legis.state.pa.us/WU01/LI/LI/US/PDF/1951/0/0020..PDF
• 42 Pa.C.S. § 1515 (MDJ jurisdiction and venue): https://www.legis.state.pa.us/WU01/LI/LI/CT/HTM/42/00.015..HTM
• Pennsylvania UJS Magisterial District Judge search: https://www.pacourts.us/courts/minor-courts/magisterial-district-judges
• City of Philadelphia — Rent your property (long-term): https://www.phila.gov/services/permits-violations-licenses/rent-or-sell-property/rent-your-property-long-term/
• City of Philadelphia — Get a Rental License: https://www.phila.gov/services/permits-violations-licenses/get-a-license/business-licenses/rental-and-property/get-a-rental-license/

This template is for informational purposes only and does not constitute legal advice. Pennsylvania security deposit law, including local ordinances in Philadelphia and other municipalities, may impose requirements beyond those described. Consult a licensed Pennsylvania attorney before use.