Updated almost 9 years ago on . Most recent reply
PA Law Question - Security Deposit
The PA law reads, "
"Escrow Funds Limited:
(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."
Can anyone explain (b) to be please? If someone rents using a 1 year lease and I charge a 2 month security deposit, is (b) saying I must return 1 month (half in this case) if that same person renews the lease for a second year? Or is (b) saying on that renewal lease that I may charge an additional security deposit of 1 month's rent, above the 2 month's deposit which I already am holding?
Thank you