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Pennsylvania Residential Lease Agreement Template
Pennsylvania is unusual in that the deposit cap shrinks over time: up to two months' rent during the first lease year, then one month from year two onward. Deposits over $100 generally go into escrow, interest starts after two years, and with no statewide entry-notice or late-fee statute, your lease must set those terms clearly.
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Pennsylvania rules to know
Deposit caps change after year one
During the first year of a lease, a deposit may not exceed two months' rent. From the start of the second year, the maximum drops to one month's rent, and any excess must be returned.
Landlord and Tenant Act of 1951, 68 P.S. 250.511a
Escrow and interest after two years
Deposits over $100 must generally be placed in an escrow account in a federal or state regulated institution, and the tenant must be told where. Once a deposit is held over two years, it must earn interest, paid to the tenant annually minus a 1% fee.
68 P.S. 250.511b
Return within 30 days with list
Within 30 days after the lease ends and the tenant moves out, return the deposit with a written list of any damages deducted. Missing the deadline generally forfeits your right to withhold and can make you liable for double the amount wrongfully kept.
68 P.S. 250.512
Entry and late fees set by lease
Pennsylvania has no statewide statute setting landlord entry notice or a late-fee cap, so the lease should state reasonable terms. Philadelphia and some other cities have additional local rules.
Landlord and Tenant Act of 1951
Last updated 2026-10-05
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What a residential lease agreement covers
- Parties, premises and term
- Rent, due date and late fees
- Security deposit amount and return
- Maintenance and repair responsibilities
- Pets, guests and use restrictions
- Entry and notice rules
- Required state and federal disclosures
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Frequently asked questions
- What happens to the deposit in the second year of a Pennsylvania lease?
- During the first year, a deposit may not exceed two months' rent. From the start of the second year, the maximum drops to one month's rent, and any amount above that must be returned to the tenant. Track lease anniversaries so you can refund the excess on time.
- Do Pennsylvania landlords have to pay interest on deposits?
- Deposits over $100 generally must be placed in an escrow account at a federal or state regulated institution, and the tenant must be told where. Once a deposit has been held over two years, it must earn interest, paid to the tenant annually minus a 1% fee.
- What is the risk of returning a Pennsylvania deposit late?
- You must return the deposit with a written list of any damages deducted within 30 days after the lease ends and the tenant moves out. Missing that deadline generally forfeits your right to withhold anything and can make you liable for double the amount wrongfully kept.
- How much can I charge for a security deposit?
- Many states cap deposits — often at one or two months' rent — and set a deadline for returning them with an itemized list of deductions. The cap and deadline vary by state.
- What disclosures does a lease need?
- Federal law requires a lead-based paint disclosure for most housing built before 1978. States add their own, such as mold, flood zone, bed bugs or the deposit's bank location.
- Can I just use a national lease template?
- Risky. Lease law is mostly state and local, and a clause that's fine in one state can be void — or carry penalties — in another.
Residential Lease Agreement in other states
More Pennsylvania templates
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