Pennsylvania security deposit account for landlords
Easily collect and manage deposits for every property with dedicated security deposit accounts.
Why use a security deposit account in {{ state }}
Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.
Benefits for property
owners
Repair and maintenance
Covers property damage such as paint, carpet, or floor damage, including costs caused by pets.
Fund separation
Meet state requirements for holding deposits in a dedicated tenant security deposit account.
Streamlined returns
Simplifies refunding tenants while accounting for deductions like cleaning or unpaid utilities.
Benefits for tenants
Fair protection
Funds are protected from misuse, covering only actual repair costs like cleaning, carpet replacement, or floor damage.
Transparency on deductions
Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
Savings potential
Deposits may be held in a tenant security deposit account or rental deposit account that earns security deposit interest, helping tenants recover more than they put in.
Baselane accounts cannot hold security deposits in states requiring escrow or state-based accounts, but can be used to collect, track, and securely transfer deposits to compliant external accounts.
{{ state }} security deposit account
Each tenant’s security deposit in Pennsylvania must be held in an escrow bank account that earns interest if the tenant has lived in the house for more than 3 years. Give tenants a written statement of the amount deposited and the name and address of the bank.
{{ state }} security deposit
limits
The maximum security deposit in Pennsylvania is two months' rent for the first year of the lease, and it decreases to one month’s rent for the second year and any subsequent years. If you have more than a month’s rent in the second year, return it to the tenant.
{{ state }} security deposit interest
State law security deposit mandates interest on the security deposit in Pennsylvania only if the tenant has lived in the place for more than three years and the deposit amount is above $100. At the end of the third year of the tenant’s lease and each year thereafter, pay the security deposit interest rate, minus 1%, that you can keep.
Go beyond standard security deposit accounts
Collect, return, and track deposits by tenant and
property, even when funds are held in external accounts.
{{ state }} security deposit accounts
Keep every deposit organized and accounted for with secure transfers to [State] security deposit accounts.
Unlimited accounts for all entities
Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.
Free online payments
Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.
Automated bookkeeping
Track and tag payments to the right tenant and property — automatically.
Essentials for every door
Everything you need for every part of the rental process.
Lease creation and e-sign
Upload or create and e-sign state-specific leases online.
Free tenant screening
Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.
Property-specific accounts
Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.
{{ state }} security deposit rules
- 1-year lease: 2 months' rent
- 2nd and subsequent years: 1 month's rent
Yes, only if the deposit is over $100, beginning the third year of the lease
Hold tenant deposits in an escrow bank account that earns interest if the tenant has lived in the house for more than 3 years. Give the tenant a written statement of the amount you received and the name and locations of the security deposit bank account in Pennsylvania.
Unpaid rent or utilities, repairs, lease violations, and cleaning costs
30 days
Additional resources
ARTICLE
How to collect security deposits
FAQs
How much security deposit can a landlord charge in Pennsylvania?
The Pennsylvania security deposit limit is based on the lease length. For the first year, the limit is 2 months' rent and reduces to 1 month’s rent for the second year and beyond. Any prepaid rent, such as first and last month's rent plus the deposit, is often counted toward this cap.
Is interest required on Pennsylvania landlord security deposits?
As per state law in Pennsylvania, security deposit interest is mandatory in the third year of a lease if the deposit is over $100. At that point, move the money into an interest-bearing landlord tenant security deposit bank account in Pennsylvania and pay earned interest annually to tenants, minus a 1% that you can keep.
How should I issue a security deposit receipt to tenants in Pennsylvania?
Give tenants a written receipt outlining the name and location of the security deposit bank account in Pennsylvania and the amount you received.
How many days to return the security deposit in Pennsylvania?
Tenant security deposit in Washington must be returned within 30 days of the tenancy end date in full. If you keep funds, share a written, itemized list of damaged claims and return the remaining balance within the same timeline. If you fail to do so (given that the tenant gave you a forwarding address when they moved out), the tenant has the right to sue you for double the amount of the security deposit.
What can a landlord deduct from a security deposit in Pennsylvania?
As per the landlord's right, the security deposit in Pennsylvania can be used to recover damages caused by tenants to the property (house rental, apartment, condo) beyond the reasonable normal wear and tear, such as floor damage, broken furniture, or damaged kitchen supplies. Landlords can also charge for any pending rent or utilities.
Can a security deposit be used for unpaid rent in Pennsylvania?
Yes, landlords can use funds from a security deposit escrow account in Pennsylvania to cover any rent the tenant didn’t pay by the due date. You can simply keep the owed amount without giving a separate written notice (though you still need to provide an itemized list of damages claimed within 30 days).
Can a landlord keep a security deposit for breaking a lease in Pennsylvania?
Yes, a landlord security deposit in Pennsylvania can be used to cover losses from a tenant breaking lease terms, provided the lease agreement outlines this. This is because the tenant is liable for rent until a replacement tenant is secured.
