How to Hold and Return a Security Deposit in Pennsylvania

Managing a Security Deposit in Pennsylvania

In Pennsylvania, you may not charge a security deposit that exceeds more than two months' rent.

Storing the Deposit

State law demands that a security deposit must be kept in a escrow account in a bank that operates locations in Pennsylvania and is federally insured. You must let your subtenant know the name and address of the bank where the security deposit is being held. If any interest is accrued on the deposit, it belongs to your subtenant.

Returning the Deposit

You must return your subtenant's security deposit within 30 days of the end of the sublease. You can use the security deposit to cover any unpaid rent at the end of the sublease or to cover the cost of any damages to the unit that exceed normal wear and tear. You must provide your subtenant with a written, itemized list of any amount you plan to withhold from the deposit within 30 days of the end of the sublease. If you do not provide this list within 30 days, you forfeit your right to keep any of the deposit. If your subtenant does not tell you in writing where to send the deposit, you don't have to refund any of their deposit.