All Forum Posts by: Moon Molson

Philly Landlords,

Do any of you have a sample or template of a security deposit escrow agreement?

Banks seem to need one in order to open escrow accounts for security deposits (required by law in PA), but I can't seem to find a sample or template of this type of agreement ANYWHERE!

PLEASE HELP!!!

MM

PA Landlords,

Someone just told me that it's illegal to ask for first month's rent, last month's rent, and one month's security deposit in PA?

I understand that...

"Pennsylvania law limits the amount of security deposit a landlord can demand. During the first year of the lease, the security deposit cannot be more than two months’ rent. A landlord might ask the tenant to pay a security deposit plus “the last month”. Regardless of what the landlord may call it, this “last month’s rent” payment is still part of the two-month maximum security deposit for the first year."
--Housing Equity Center

This person maintains that I can't ask for "3 months of rent" up front. But there seems to be a semantic issue here that doesn't quite make sense to me. The first month's rent has to be paid before move-in regardless, so am I really asking for "three months of rent," or am I asking for the "first month's rent and "two months of security" (including "security deposit" and " last month's rent") to move in?

And how does it work if I need a "double deposit" for a risky tenant? Does this mean I can't then ask for "last month's rent"? What about even asking for "first month's rent plus double security deposit"?

What are other PA landlords doing?

Wow! Thanks! This could totally help!

 Yeah, that was the case the first time: valve leaks. Hugely expensive, which is why I got on top of this giant water bill ASAP. But nope, not this time. The plumbers checked everything; the water wasn't running. I have to either submeter (which everyone seems to be advising against) or figure out a way to make the tenants more responsible with water usage. Well...unless the city is making crazy scary guesses as to water usage that they will rectify later.

No new tenants, but this is great advice regardless! Thank you!

Interesting that you got hit with 4x last bill, too. I expected some serious flux in the water bills, but the 4x thing is CRAZY. It seems that beyond submetering, we as Philly landlords have no recourse in regard to this issue, no matter if it's due to consistent tenant overuse or the city making wild guesses about water consumption.

 Thanks. Yeah, it's looking like most landlords are suggesting that I don't submeter due to the threat of liens. It's hard for me to charge for excessive water usage because it's hard to know who overused the water when there's only one meter for two apartments. There is currently a standard monthly charge of $60 added to the rent that generally covers the water bill for both apartments, which averages about $115 per month.

 Also, I was assuming that they weren't guessing anymore because of the updated water meters that send the information electronically.

 Thank you. Your sarcasm is really helpful regarding the question of submetering.

 Not that easy in Philly multifamily, where you can't submeter without the danger of liens, which is why I'm wondering if other local landlords are doing so.