Philadelphia Landlord-Tenant Laws: What Every Property Owner Needs to Know

By Benjamin Oller, Principal at TCS Property Management · About the author

By the TCS Management Team

Philadelphia is one of the most rewarding rental markets on the East Coast — and one of the most regulated. Owning rental property here means complying with two layers of law: Pennsylvania state statutes and a growing list of city-specific ordinances that go well beyond what the state requires. At TCS Management, headquartered right here in Old City, navigating these rules is what we do every day. Here's a practical overview of the requirements every Philadelphia landlord should understand.

Start With Licensing: No License, No Rights

Before you collect a single rent check, Philadelphia requires:

A Commercial Activity License. This is the city's baseline business registration, and it's free — but you can't get a rental license without it.
A Rental License from the Department of Licenses & Inspections. Every residential rental unit in the city must be covered by an active rental license, renewed annually. This is not a formality. Without a current rental license, a landlord cannot legally collect rent and cannot file an eviction. Courts routinely dismiss eviction cases where the license has lapsed.
A Certificate of Rental Suitability. Within 60 days before a tenant moves in, the landlord must obtain this certificate from L&I and provide it to the tenant along with the city's “Partners for Good Housing” handbook. Skipping this step can bar you from collecting rent for the period of noncompliance.
Lead paint certification. For most properties built before 1978, Philadelphia requires the unit to be certified lead-free or lead-safe by a certified inspector before leasing, with the certification filed with the city and provided to the tenant. This applies broadly across rental housing in the city, and the penalties for skipping it are steep.

Security Deposits: Pennsylvania Sets the Rules

Security deposits are governed by state law, and the rules are specific:

Year one: The deposit may not exceed two months' rent.
Year two and beyond: The cap drops to one month's rent, and any excess must be returned.
After year two: Deposits must be held in an escrow account, with the tenant notified of the bank and account details; interest becomes payable to the tenant starting in year three.
At move-out: The landlord has 30 days to return the deposit with an itemized list of deductions. Miss that window and the tenant may be entitled to double the deposit.

Screening Applicants: The Renters' Access Act

Philadelphia's Renters' Access Act regulates how landlords screen tenants. Landlords must post their screening criteria, provide applicants with notice of those criteria, and give written denial notices that explain the basis for rejection. The law limits blanket denials based solely on credit scores or certain eviction records, and tenants denied housing have a window to dispute inaccurate information. If your application process hasn't been updated in a few years, it's likely out of compliance.

Evictions: The Diversion Program Comes First

This is the biggest difference between Philadelphia and virtually every other market we serve. The Philadelphia Municipal Court requires landlords seeking to evict to participate in the city's Eviction Diversion Program first, and to wait 30 days before filing an eviction complaint if the issues aren't resolved.

In practice, the sequence looks like this:

Serve proper written notice to the tenant as required by the lease and law.
Apply to the Eviction Diversion Program through the city's online portal — an active rental license is required to apply — and provide the tenant a notice of their diversion rights with an updated ledger of balances owed.
Participate in mediation. A housing counselor works with both parties during the 30-day period, often resulting in a payment agreement that avoids court entirely.
File in Municipal Court only if diversion doesn't resolve the matter, with your lease, rental license, Certificate of Rental Suitability, diversion notice, and current ledger in hand.

Many Philadelphia tenants also have access to free legal representation through the city's Right to Counsel program, so landlords should expect cases to be litigated properly. Cutting corners on notice, licensing, or documentation is the fastest way to lose an otherwise valid case.

Habitability and Repairs

Landlords must maintain rental units in safe, habitable condition — including working heat, plumbing, electricity, and freedom from hazards like pest infestations. Philadelphia also has specific ordinances on issues like bedbug response and heating season requirements. Tenants who make legitimate repair complaints are protected from retaliation, so document maintenance requests and responses carefully.

Why Compliance Is Worth Professional Management

The pattern across all of these laws is the same: Philadelphia ties a landlord's rights to a landlord's paperwork. An expired license, a missing certificate, or a skipped diversion application doesn't just risk a fine — it can suspend your ability to collect rent or remove a non-paying tenant.

At TCS Management, compliance is built into our onboarding and monthly operations: licensing renewals, certificates, lead certifications, compliant screening, proper notices, diversion filings, and court-ready documentation. Our owners stay protected, and our tenants get the transparent, professional experience the law intends.

Own rental property in Philadelphia — or thinking about buying here? Reach out to the TCS Management team. We'll make sure your portfolio is compliant, protected, and performing.

TCS Management | Full-service property management

107 S 2nd Street, Philadelphia, PA 19106 | 215.383.1439 | TCSMGT.com

Serving PA, NJ, DE, MD, DC, VA, NY, TN, NC, SC, GA, AR, AZ, FL, TX, WI, and MI

This article is for general information only and is not legal advice. Philadelphia and Pennsylvania housing laws change frequently — consult an attorney or your property manager about your specific situation.