SECURITY DEPOSITS - What You Need to Know

SECURITY DEPOSITS - What You Need to Know

Most residential tenants pay a security deposit to their landlord. There is a law in Pennsylvania that regulates how much of a security deposit can be required, what the landlord must do with the security deposit, and when the security deposit should be returned. These rights cannot be taken away by the landlord.

The first year, the landlord is permitted to require a security deposit of up to two months’ rent. In the second year that amount decreases to a maximum of one month’s rent. A landlord should return to the tenant any amount over one month's rent that was originally charged. After two years, the landlord must put a security deposit of more than $100.00 in an interest bearing bank account and inform the tenant of the name and address of the bank in which the account has been opened. When a tenant moves, he/she must give the landlord written notice of his/her new address. If a tenant does not know exactly where he/she will be living then he/she can give the address of a friend or a family member. It is a good idea to send this to the landlord by certified mail and to keep a copy of the letter, the sender's receipt and the return receipt. It is also advisable to return the keys to the landlord on the day that the tenant moves out.

Then, if the tenant provided the written notice of a new address, the landlord has 30 days to give the tenant a written list of damages and return the deposit minus the amount claimed for actual damages to the unit. If the landlord does not do this, the landlord loses the right to keep the deposit and the right to sue the tenant for damages to the residence. This failure of the landlord also gives the tenant the right to sue the landlord for double the amount of the security deposit.

For instance, if the security deposit is $300 and there are actual damages of $50, the landlord must return $250 to the tenant along with a list of the actual damages. The deposit and written list must be returned within 30 days of the date that the tenant provided his/her new address to the landlord. If the landlord does not return the deposit within that time, the tenant may sue the landlord for double the amount of the security deposit. If a landlord does provide the list of damages and withholds part or all of the security deposit, the tenant must sue the landlord to recover those funds. In such cases, the landlord must prove the actual damages resulting from the tenant's residency.

REMEMBER: The landlord may refuse to return the security deposit without following the above steps if the tenant did not pay rent or otherwise broke the lease.

ALSO: Even if you do not provide the landlord with your new address at the time you move, you can still sue your landlord for the actual amount of the security deposit minus actual damages. In this situation, you will not be able to sue for twice the deposit, and the landlord can still sue you for damages to the rental unit.