Cal. Civ. Code § 250.511a
Escrow Funds Limited
Operative Text
(a) No landlord may require a sum in excess of two months' rent to be deposited in escrow for the payment of damages to the leasehold premises and/or default in rent thereof during the first year of any lease. (b) During the second and subsequent years of the lease or during any renewal of the original lease the amount required to be deposited may not exceed one month's rent. (c) If, during the third or subsequent year of a lease, or during any renewal after the expiration of two years of tenancy, the landlord requires the one month's rent escrow provided herein, upon termination of the lease, or on surrender and acceptance of the leasehold premises, the escrow funds together with interest shall be returned to the tenant in accordance with sections 511.2 and 512. (d) Whenever a tenant has been in possession of premises for a period of five years or greater, any increase or increases in rent shall not require a concomitant increase in any security deposit. (e) This section applies only to the rental of residential property. (f) Any attempted waiver of this section by a tenant by contract or otherwise shall be void and unenforceable.
Under 68 P.S. § 250.511a, Pennsylvania law caps the security deposit a landlord may collect from a residential tenant. During the first year of a lease, the cap is two months' rent; from the second year onward, it drops to one month's rent. Once a tenancy reaches five years, any rent increase does not entitle the landlord to a corresponding increase in the security deposit. Any contractual attempt to waive these protections is void and unenforceable.
Plain English — not legal advice.
Operators of residential rental property in Pennsylvania must structure security deposit collection to comply with 68 P.S. § 250.511a. A compliant landlord collects no more than two months' rent as a deposit at the start of a tenancy, reduces that ceiling to one month's rent beginning in the second year, and refrains from demanding additional deposit funds when raising rent after a tenant has lived in the unit for five or more years. Landlords holding deposits into the third year or beyond are also required to return those funds with interest upon lease termination or surrender, consistent with the companion provisions referenced in § 250.511a(c).
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Pennsylvania tenants in residential rentals are protected by 68 P.S. § 250.511a, which limits how much a landlord can require as a security deposit. If a landlord demands more than two months' rent at the start of a lease, or more than one month's rent after the first year, that demand exceeds what the law permits — and any agreement purporting to waive these limits is unenforceable. Tenants who believe a landlord has collected an excess deposit may consider raising the violation as a defense in a legal proceeding, filing a complaint with a local magistrate or court, or reaching out to a tenant-rights organization for general information about available remedies.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 10, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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