Security Deposit for Lease Renewal & Rent Increase
Hi,
I am a year old landlord. I am yet to send out a renewed lease to the tenants. Per market standards, I have notified tenants of the rent increase and they have agreed. Now, I am not sure how much am I allowed to receive as security deposit for the new lease. PA law states, I can charge SD of 2 months for first year and one month for subsequent years. Does that mean, I can charge the whole month of rent as SD for the new lease or just the difference from increased rent amount to the old? Please guide me through. Thanks for any help!
Most Popular Reply
Typically you don't change the security deposit on an existing tenant.
If they have been there a year and been a good resident, that is a great sign. You shouldn't need more security deposit.
The only time changing a security deposit might make sense is if they are transferring from a lower-rent unit to a much higher-rent unit