5 Philadelphia Rental Laws Every Landlord Should Know

Philadelphia is known for its rich history, vibrant neighbourhoods, and its deeply tenant-focused rental laws. Whether you’re a seasoned landlord or just getting started, navigating these rules is essential to staying compliant and avoiding costly legal mistakes.

In this post, we’ll break down 5 key Philadelphia rental laws every landlord needs to know before leasing a property. Each law has specific obligations that could impact how you write leases, screen tenants, handle deposits, and even manage pest control.

1. Good Cause Law for Short-Term Leases

Philadelphia’s Good Cause Eviction Law applies to leases under 12 months, including month-to-month agreements. This law limits a landlord’s ability to refuse renewal or terminate a lease without a valid, documented reason.

It’s worth noting that while flexibility is often the draw of month-to-month leases, this flexibility comes with strict limitations. Many property owners in the city avoid short-term leases entirely, choosing instead to structure one-year agreements, which offer clearer terms and more predictable renewals.

Valid reasons for termination must align with those outlined by the City of Philadelphia, Good Cause Policy, and landlords must give written notice explaining why the lease is not being renewed. If not handled correctly, leases may automatically renew, making proper documentation a critical part of the process.

2. Renters Access Act: Tenant Screening Rules

The Renters Access Act outlines specific standards for how landlords must handle the tenant screening process. The focus is on fairness, transparency, and consistency.

Before collecting any application fees or accepting applications, landlords must share their written screening criteria with all applicants. These standards must be applied equally to everyone, and automatic denials based solely on a low credit score or a past eviction, particularly older or resolved cases, are not permitted.

The law also requires landlords to issue a written adverse action letter explaining the reason for any denial, and they must provide access to the screening report. The screening process can still be thorough, but it must be structured in a consistent, lawful way.

For example, using a weighted system that evaluates income, credit, and rental history together helps landlords avoid automatic disqualification.

3. Bed Bug Law: Disclosure and Responsibility

Philadelphia has a specific bed bug ordinance that places both disclosure and financial responsibility on landlords.

When a new tenant signs a lease, the landlord must disclose whether bed bugs were detected in the past 120 days. Even if the property was clear, that fact must be disclosed. A city-issued bed bug information pamphlet must also be provided.

If a tenant reports bed bugs within the first year of tenancy, the landlord is responsible for 100% of the treatment costs. If the infestation is reported after the one-year mark, the costs must be split equally between landlord and tenant.

Landlords who document infestations promptly and maintain clear inspection records will be in a much better position to comply with the law.

4. Security Deposit Law and New Installment Rule

Philadelphia landlords must comply with both state deposit rules and newer city-level regulations around how deposits are collected and returned.

During the first year of tenancy, a landlord may collect up to two months’ rent as a security deposit. However, once that year ends, they must refund one month, keeping only one month’s rent in escrow. Deposit returns must include itemized deductions and be delivered promptly after move-out.

Starting in December 2025, landlords who manage three or more rental units and collect more than one month’s rent as deposit must offer tenants an installment option. Instead of paying the full amount up front, tenants can pay the balance in three equal monthly installments.

Smaller landlords, those who own or manage two or fewer units, are exempt. But if a property management company is involved, and they oversee more than three properties, the rule still applies.

5. Fair Practices and Lease Terms

While Philadelphia currently does not have traditional rent control, landlords are still expected to follow fair housing practices when adjusting rent or enforcing lease terms.

These expectations are enforced under state and federal regulations, including those described in The Fair Housing Act, which prohibits discrimination based on race, color, religion, sex, national origin, disability, or familial status.

Even in areas without rent stabilization laws, landlords must ensure that price increases or eviction filings are not used as a form of retaliation or applied inconsistently. Transparent lease terms, regular review of tenant communications, and consistent procedures are key to staying compliant.

Many landlords review their processes annually, especially when considering changes in rent or when investing in new rental units, such as those explored when buying investment property in Philadelphia.

Key Takeaways

• Leases under 12 months require valid cause for non-renewal or termination
• Written screening criteria must be shared before accepting applications
• Automatic denials based on credit or eviction history are not allowed
• Bed bug disclosure is required, and treatment costs depend on tenant duration
• New installment rules for deposits apply to landlords managing 3+ units
• Fair housing standards apply to all leasing, screening, and rent increase decisions

Final Thoughts (Updated with Company Name):

Philadelphia’s rental laws demand close attention. From lease agreements to deposit collection and tenant screening, compliance isn’t optional—it’s the baseline for operating legally in this market.

At Skyline Property Management, we understand how complex and regulated the Philadelphia rental landscape can be. Landlords who stay informed and proactive are not only minimizing legal risk, they’re also building more stable and transparent relationships with their tenants.

Legal Disclaimer:

This blog post is provided for general informational purposes only and does not constitute legal advice. Landlords and property owners should consult with a qualified attorney or legal professional regarding their specific situation and obligations under Philadelphia and Pennsylvania law. While efforts are made to ensure the accuracy of this information, laws and regulations may change, and local interpretations may vary.