What are the laws regarding security deposits?
In Pennsylvania, laws surrounding security deposits are laid out in the Landlord and Tenant Act of 1951. Generally speaking, a landlord may require a security deposit from a tenant before they move in. This deposit is meant to cover any past due rent, damages to the premises, or costs resulting from the tenant’s failure to comply with the lease agreement. In Pennsylvania, landlords must place security deposits in a trust account that is established for the exclusive purpose of holding the tenant’s security deposit. The account must be established with a financial institution located in Pennsylvania. The landlord must also provide the tenant with written notice of the account and its location, as well as the name and address of the landlord or their agent who is responsible for the deposit. Within 30 days of the termination of the lease, the landlord must return the security deposit, as well as any interest that has accrued on the deposit, to the tenant less any deductions allowed by law. If the landlord fails to return the deposit within the 30-day period, the tenant can sue for twice the amount wrongfully withheld. In summary, Pennsylvania landlords must establish a trust account for the security deposit, provide the tenant with written notice of the account and its location, and return the deposit to the tenant within 30 days of the termination of the lease, less any deductions allowed by law. Failure to do so can result in the tenant being able to sue for double the amount wrongfully withheld.
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