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Summary
Philadelphia has introduced a new security-deposit law that gives renters more flexibility while preserving protections for housing providers. Beginning Dec. 2, 2025, certain landlords must allow tenants to pay larger deposits in installments, lowering move-in costs and expanding access to housing. Here’s what renters, landlords, and property managers need to know, and how RentSpree supports compliance and smooth workflows.
Philadelphia has introduced a major change designed to make moving more affordable. Under Bill 250044-A, part of the city’s Move-In Affordability Plan, certain landlords must now give renters the option to pay larger security deposits in installments instead of all upfront.
The rule applies to new leases and renewals starting Dec. 2, 2025, marking an important shift in how move-in costs can be structured, reducing financial barriers for renters while still protecting property owners.
What the law requires
Installment payments for larger deposits
Landlords or property managers who control three or more units and charge a security deposit greater than one month’s rent must now offer renters the option to spread the additional amount over three equal monthly payments after move-in.
Example:
- Rent: $1,000
- Deposit required: 2 months' rent ($2,000)
- Up-front payment: $1,000 (equal to one month’s rent)
- Remaining $1,000 paid in three installments of $333.33 at the end of months one, two, and three.
Small-landlord exemption
Landlords who own or manage two or fewer units are exempt and may continue collecting the full deposit upfront.
Applies only to new leases
Existing leases do not need to be modified. The requirement applies only to agreements signed or renewed after the effective date.
What this means for renters
- Reduced up-front move-in costs
- Greater budgeting flexibility
- Improved access to housing during a period of rising rents
What this means for landlords & property managers
- Must offer installment plans when deposits exceed one month’s rent (unless exempt)
- Should update lease templates, disclosures, and payment workflows
- Must clearly communicate deposit terms to maintain compliance
How RentSpree helps
RentSpree provides digital tools that make compliance straightforward, including:
- Streamlined documentation for deposit terms and installment schedules
- Clear, consistent communication throughout the rental application process
- Easy-to-use workflows that keep landlords organized, transparent, and compliant
Philadelphia’s new security-deposit law is a meaningful step toward improving rental affordability. RentSpree will continue supporting real estate professionals with modern tools that make compliance simple and keep rental workflows running smoothly.
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