Do you own and rent properties in Pennsylvania? If so, youve likely invested in a lucrative market. Pennsylvania has several cities ideal for real estate investors, including Philadelphia, Pittsburgh, Reading, Allentown, and others.

However, if you do rent properties in this state, youre subject to a group of laws that regulates how you can operate them: Pennsylvania landlord-tenant laws.

Landlord-tenant laws are some of the most frequently misunderstood, so its worthwhile to invest some time educating yourself about these laws in Pennsylvania. They regulate the relationship between you and your tenants, and they impact everything from what you include in your rental agreements to how you can end a lease, as well as all the in-between.

This article reviews a few of the most important landlord-tenant laws to know in the state of Pennsylvania.

#1 Security deposits are limited depending on term length.

Security deposits are some of the most highly regulated parts of property management across the states. In Pennsylvania, security deposits are regulated differently depending on the term length. If the tenancy lasts a year or less, the security deposit is limited to two months rent; for subsequent years the limit decreases to one months rent.

One- to two-months rent is a typical limit for security deposits. Its also important to note that in Pennsylvania, landlords must return deposits to tenants within 30 days after the tenancy ends.

#2 Landlords are required to pay interest on deposits.

Another important law to know about security deposits in Pennsylvania is that landlords are actually required to pay interest on them. First, the funds must be deposited in an escrow account or at a federal or state-regulated institution. Then, when its time to refund the deposit at the end of the tenancy, the landlord must pay the tenant any interested accrued on the funds.

What about deductions? You are still required to pay interest even if you make deductions from the deposit. For deductions, the Pennsylvania security deposit law normal wear and tear rule designates that you cannot make deductions from the deposit for anything that would be considered typical wear and tear on the property (for instance, routine/preventative maintenance or regular cleaning costs).

#3 Fair housing rights are extended.

Most landlords are aware of the federal Fair Housing Act (FHA), which protects renters from discrimination based on race, color, national origin, religion, sex, familial status, and disability. However, some landlords arent aware that the states have their own fair housing acts, many of which expand the federal governments protected classes.

Pennsylvania state law adds fair housing protections for ancestry and pregnancy as well as the seven protected classes mentioned above. Remember that fair housing practices dont only apply during tenant screening, but throughout the entire tenancy. For example, rental advertisements cannot express a preference for a particular class of renter, nor can you steer tenants to tour particular units or enforce your policies differently for different tenants based on their membership in any of these classes.

Fair housing laws are strictly defended in court, and violations result in heavy fines and penalties. For this reason, its critical to be aware of these.

#4 There are no restrictions on late fees, application fees, or grace periods.

Something positive for landlords to know about renting in Pennsylvania is that there are no restrictions on late fees, application fees, or grace periods. This means PA lease agreement laws allow you to set your own policies for these fees in your lease documents.

However, you should be aware that unreasonable policies (for example, charging $300 for a late fee) will not hold up well if a tenant were to take you to court. In general, a reasonable late fee is considered to be around 5% of the monthly rent rate. Similarly, application fees are considered reasonable if they are approximately equal to the actual cost of screening a tenant.

However, there is a law to know regarding what is a landlord required to disclose in a Pennsylvania lease: lead-based paint hazards. As per the federal government, landlords must provide all tenants with an EPA-prepared pamphlet about the dangers of lead-based paint for properties built before 1978.

#5 Ten days notice is required to evict a nonpaying tenant.

Its a familiar situation most landlords will experience some time or another in their career: a tenant suddenly stops paying rent and wont respond to your reminders. In this case, there is no reason to prolong eviction. However, eviction law in Pennsylvania, as in most states, is careful to delineate specific steps and procedures you must follow before you can remove a tenant from your properties.

For nonpayment, a 10-day eviction notice (or pay-or-quit notice) is required. This means tenants get 10 days to pay rent or move out before you can formally file for eviction with the court.

#6 Other lease violations require 15-30 days notice.

What happens if a tenant violates another lease term? In this case, you must provide a 15-day notice to quit (for tenancies one year or less) or a 30-day quit notice for tenancies longer than one year. Note that you do not need to give the tenant an opportunity to correct or cure their breach of contract. However, you still need to wait out the full notice period, or else the eviction will be delayed as you did not follow the lawful procedures.

Conclusion

Landlord-tenant law isnt light reading, but it is an unfortunately necessary part of being a landlord. By knowing the laws that apply to you in Pennsylvania, youll be better prepared to defend your leases in court should you need to and safeguard your rental business for years to come.