Staying up-to-date with Philadelphia’s landlord-tenant laws is part of what we do as professional property managers. We know keeping up with all of the latest requirements and regulations can be challenging for our owners and investors. Laws change all the time. It’s easy to make a mistake.
Why increase your risk?
Thanks to our legal knowledge and expertise around the state, local, and federal laws, we can make sure you’re complying with all of them.
If you are wondering about the legal landscape and where most of the legal pitfalls can be found, we’re going to highlight a few important things that you need to know. Remember that TCS Management does a good job of keeping you up-to-date with our information blog and online resources, but it’s much easier to protect you and your investment when you partner with us for Philadelphia property management services.
Philadelphia Fair Housing
Let’s start with fair housing.
The Pennsylvania attorney general, through the Bureau of Consumer Protection, is tasked with enforcing all state fair housing laws. They’re not dissimilar to the federal fair housing laws, although we do identify protected classes that go beyond the seven protected classes covered by the Fair Housing Act.
When you’re renting out a home to tenants in Philadelphia, you cannot discriminate against a tenant or prospective tenant on the basis of:
- Race
- Color
- Religious creed
- Ancestry
- Age (forty years and older)
- Sex
- Pregnancy/childbirth
- National origin
- Familial status
- Disability
- The use of a guide animal because of the blindness or deafness of the user.
This is state law. Philadelphia follows the state law, and the local fair housing laws are administered and enforced by the Philadelphia Fair Housing Commission.
Protecting Philadelphia Tenants Against Unfair Rental Practices
Philadelphia’s Fair Housing Commission will also enforce the local laws that protect tenants against unfair rental practices.
Specifically, tenants are protected against:
- Unlawful lease termination
- Unlawful eviction
- Retaliation and discrimination
- Staying in a lease agreement when they’re victims of domestic violence
It’s important that you understand eviction laws, for example, so that you don’t make an error trying to remove a tenant from your property. You cannot change the locks just because rent is late, for example.
Evictions in Philadelphia
Eviction laws are always changing, and it’s important that you understand the notice periods and the process for court hearings and mediations in Philadelphia.
You should also know that the city now has an Eviction Diversion Program (EDP) in place. This program offers financial assistance to tenants struggling to pay their rent, with the goal of preventing unnecessary evictions. Get to know the eligibility criteria and the process of applying for this help, as it can be a great alternative to eviction.
Security Deposits in Philadelphia
One of the areas where it’s easiest to make a legal mistake is with security deposits. It’s important that you understand the timeline that must be followed when returning a security deposit. You also have to know what you can and cannot deduct from that deposit after a tenant has moved out.
A security deposit is not the same as rent, and that’s an important distinction. This is money that actually belongs to the tenant, but is held by the landlord or a property manager for tenant-caused damages and sometimes past-due rent. Without the agreement of the landlord, a security deposit may not legally be used as the last month’s rent.
Pennsylvania law limits the amount of a security deposit:
- During the first year of a lease the landlord may not collect a deposit of more than the equivalent of two months’ rent.
- At the beginning of the second year of a lease, you cannot keep a security deposit equal to more than one month’s rent. You’ll have to return any money greater than one month’s rent still being held as a deposit.
- After five years, you cannot increase a security deposit even if the monthly rent is increased.
The Landlord-Tenant Act of Pennsylvania requires that security deposits are kept by the landlord in an approved bank, and the tenant must be notified in writing where the bank and deposit is located. We recommend you do this in the lease agreement.
You don’t have to pay interest on the security deposit during the first two years of a tenancy. But, beginning with the third year of a lease, you need to put security deposits over $100 in an interest-bearing bank account. At the end of the third year the landlord must start giving the tenant the yearly interest that is received from the bank, less a 1 percent fee that the landlord may keep.
When it comes to returning a security deposit, you must send it to the tenant within 30 days of them moving out. After the tenant moves, you will have to give the tenant a written list of any damages. (Reasonable wear and tear does not qualify as damages). The landlord must then refund the security deposit less the cost of the repairs on the list.
The Renter’s Access Act
The Renters’ Access Act created uniform screening criteria for applicants’ rental and credit history. Landlords should follow these guidelines when they screen prospective tenants. It will ensure you follow those fair housing laws we’ve already talked about.
Implied Warranty of Habitability
In Philadelphia, you’ll be held to the habitability standards found in the city’s implied warranty of habitability. This is a legal requirement that landlords provide tenants with safe and sanitary housing. You cannot rent out a home that does not have:
- Adequate heat or air conditioning
- Electricity
- Access to safe and drinkable water
- Functioning sewage
- Sound structures and foundations
A property is inhabitable if there are serious leaks, an infestation of vermin or pests, or if the doors at the home do not lock securely.
This is not a comprehensive list of laws and regulations that you need to follow as a Philadelphia landlord. It’s just a start, and it shows you how important it is to stay up-to-date with local, state, and federal laws.
Don’t get overwhelmed. Contact us at TCS Management, and we’ll cover all the legal ground for you.
TCS Management is a full service property management company headquartered in Philadelphia, Pennsylvania, also serving Cherry Hill, NJ, Wilmington, Delaware, Nashville, Tennessee and the Atlanta, GA and Charleston, SC metro areas. We focus on single-family and multifamily residential property management of homes, condos, townhomes, and apartment buildings.
