Philadelphia Renters Get Relief with New Security Deposit and Fee Laws
The first bill limits apartment application fees to the actual cost of a background or credit check, with a maximum cap of £50. It also prevents landlords from charging the same tenant more than one application fee within a 12-month period. Councilmember Rue Landau, the lead sponsor, highlighted that these costs often create barriers for tenants already struggling with rising rents.
The second law allows prospective tenants to pay security deposits in instalments if the deposit exceeds one month’s rent. Under this rule, landlords can still require one month’s rent upfront, but any additional deposit amount must be split into three equal payments. The first instalment is due the month after the lease begins. Councilwoman Katherine Gilmore Richardson sponsored this provision, which aims to spread out the financial strain of moving.
However, the instalment option does not apply to small landlords who own two or fewer rental units. The laws also require landlords to charge the same total deposit amount, regardless of whether tenants pay upfront or in instalments.
These changes come as rents in Philadelphia continue to climb. The average cost of a one-bedroom unit has jumped by roughly 46% over the past five years, rising from £1,040 in 2021 to £1,520 in 2026. Data from 2023 showed that over 80,000 residents spent at least half of their monthly income on rent, with nearby Cumberland County, New Jersey, reporting the highest rent burden at 40%.
The new laws apply to all leases signed or renewed after December 2. They offer tenants more flexibility in managing upfront costs while maintaining consistent rules for landlords. Officials hope the measures will provide some relief in a city where housing expenses have steadily increased.
