Philadelphia Rental Laws: Deposits, Notice, and Eviction Diversion

Philadelphia’s rental laws combine Pennsylvania’s statewide Landlord-Tenant Act with a stricter set of city ordinances that require licensing, specific move-in disclosures, good-cause protections for tenants, and a mandatory eviction diversion step before any case can be filed in court. A landlord who follows only state law can still lose the ability to collect rent or evict in Philadelphia Municipal Court, and a tenant who doesn’t know the city rules can miss protections that don’t exist anywhere else in Pennsylvania.

Licenses a Landlord Must Have Before Renting

Two separate licenses are required before a unit can be legally rented in Philadelphia. The first is a Commercial Activity License, which every business operating in the city must hold and which ties the rental to the owner’s Business Income and Receipts Tax registration.¹ The second is a residential rental license under Philadelphia Code Chapter 9-3900.²

The rental license costs $69 per unit and renews annually. Let it lapse more than 60 days past the due date and a late fee of 1.5% of the license fee accrues each month. Owner-occupied units are exempt from the fee, though the city may require an affidavit.³

Operating without a current license is not a paperwork problem. Under § 9-3902, a landlord without a valid rental license cannot legally collect rent and cannot seek an eviction order. Tenants can raise the missing license as a defense, and judges routinely dismiss eviction cases where the license was never obtained or renewed.²

For any residential property built before 1978, the license itself cannot be issued or renewed, and the lease cannot be signed, until a certified lead inspector has certified the unit as lead-free or lead-safe. The tenant must receive the certification and sign acknowledging receipt, and a copy must be filed with the Department of Public Health. This applies whether or not children live in the home.⁴

Documents the Tenant Must Receive at Move-In

Philadelphia requires a specific document package at the start of every tenancy. The centerpiece is the Certificate of Rental Suitability, required under Philadelphia Code § 9-3903. The landlord applies for it through the Department of Licenses and Inspections, and it confirms the property has no outstanding building, fire, health, plumbing, or property maintenance code violations. It is valid for only 60 days from issuance, so it must be pulled shortly before the lease begins.⁵

Skipping the certificate has an unusually harsh consequence. If a landlord fails to provide it, the tenant owes no rent for the entire period the landlord was out of compliance, and the landlord has no legal way to recover that money later.⁵

Two other documents go with it. Under Chapter 9-4800, the landlord must provide a written bed-bug history covering any infestation in the unit or building within the previous 120 days, using a form from Licenses and Inspections, and must attest to its accuracy.⁶ The landlord must also hand over the “Partners for Good Housing” handbook, a city-published guide to the rights and duties of both parties. For pre-1978 buildings, the lead-safe certification is delivered with this package, along with a newer pamphlet on lead service lines and a disclosure of any known lead plumbing.⁴

Security Deposits

Deposit rules come from Pennsylvania’s Landlord-Tenant Act of 1951 and apply the same way in Philadelphia. In the first year of a lease, a landlord may collect up to two months’ rent as a deposit. Starting in the second year, the cap drops to one month’s rent, and any excess must be returned.

Deposits over $100 held for more than two years must sit in an escrow account at a regulated financial institution, and the landlord has to notify the tenant in writing of the bank’s name, address, and the deposit amount. Interest belongs to the tenant.⁷

After move-out, the landlord has 30 days to return the deposit with an itemized list of any deductions. Miss the deadline and the landlord owes double the deposit amount plus any accrued interest. The tenant must give a forwarding address in writing to preserve this right.

Rent Increases and Notice

Philadelphia Code § 9-804 sets notice requirements that depend on lease length. For leases of one year or longer, the landlord must give at least 60 days’ written notice before a rent increase takes effect. For leases shorter than one year, the minimum is 30 days.⁸

There is no rent control in Philadelphia. Pennsylvania law preempts local caps on how much rent can increase. The city’s rule governs timing, not amount. A landlord can raise rent by any figure as long as the written notice is proper and the increase isn’t retaliatory.

Habitability Standards

The Philadelphia Property Maintenance Code sets the floor for what every rental unit must provide. Heat is the most frequent flashpoint.

Heat

The mandatory heat season runs October 1 through April 30. During that window, the heating system must keep all living spaces, bathrooms, and toilet rooms at a minimum of 68 degrees Fahrenheit continuously. There is no lower nighttime threshold. If outdoor temperatures fall below 60 degrees in September or May, heat must be provided in those months too.⁹¹⁰

Smoke and Carbon Monoxide Alarms

Working smoke detectors are required on every level of the unit, including any basement or occupied attic. Carbon monoxide alarms are required whenever the unit has fuel-burning equipment, a fireplace, or an attached garage. Tenants must report alarm malfunctions to the landlord in writing.

Everything Else

Every unit must have constant running water and electricity. The roof, walls, and windows must be weatherproof. The landlord provides trash disposal and keeps common areas clean. Philadelphia does not require air conditioning, even during extreme heat. Habitability violations can be reported by calling 311, which triggers a Licenses and Inspections inspection. Confirmed violations can lead to fines or suspension of the rental license.

When Repairs Aren’t Made

Two remedies exist when a landlord ignores repair requests. Both have procedural requirements that decide whether they hold up in court.

Withholding Rent

The tenant must first notify the landlord in writing about the needed repairs and allow a reasonable time for the work. If nothing happens, the tenant should request a 311 inspection to document the violations. The full rent must go into a separate bank account and stay there untouched until repairs are made or a judge decides the case. Spending the withheld money on other expenses destroys the defense. There is no formula for how much rent a court will excuse; judges weigh the severity of the problems and typically decide that at least some portion is still owed.

Repair and Deduct

Under the implied warranty of habitability, a tenant can pay for necessary non-cosmetic repairs and deduct the cost from future rent. This applies to problems like a leaking roof, lack of running water, faulty wiring, or unsafe floors and stairs. The cost must be reasonable and cannot exceed one full lease term’s rent. The tenant must notify the landlord in writing that they are using this remedy. Landlords often respond by filing for eviction, so documentation matters.

Ending a Tenancy in Philadelphia

Two city-specific rules make ending a Philadelphia tenancy different from ending one elsewhere in Pennsylvania: good-cause nonrenewal and mandatory eviction diversion.

Good-Cause Nonrenewal

Under § 9-804(12), a landlord cannot refuse to renew a lease of less than one year without a legitimate reason. When the short-term lease expires, the landlord must identify a recognized ground and give at least 30 days’ written notice before seeking possession.⁸ Recognized grounds are:

Habitual nonpayment or late payment, meaning a pattern rather than a single instance
A material lease violation
Nuisance activity that substantially interferes with other tenants’ comfort or safety
Substantial property damage beyond normal wear and tear
Refusing landlord access after written notice for lawful purposes like repairs or inspections
Owner move-in, where the owner or an immediate family member will occupy the unit as a primary residence
Rejecting a proposed rent increase, but only if the landlord gave proper advance notice, offered the tenant the option to accept it at least 15 days before the lease expired, and genuinely intends to apply the same increase to the next tenant

Retaliation

Section 9-804(2) prohibits terminating a lease or changing any lease term in retaliation against a tenant for reporting a code violation, filing a complaint, joining a tenant organization, or exercising any other legal right. Victims of domestic violence or sexual assault are also protected. If a termination notice is issued within one year after a tenant exercised a protected right, the burden flips: the landlord must prove the termination was not retaliatory.⁸

Mandatory Eviction Diversion

Before filing an eviction case, the landlord must go through the Eviction Diversion Program under § 9-811. That means enrolling in the program, giving the tenant a written notice explaining their diversion rights, and participating in good faith for at least 30 days. The program handles mediation and connects tenants with rental assistance when it is available.¹¹

The only exception is when eviction is needed to stop an imminent threat of physical harm or harassment. Otherwise, skipping diversion is a valid defense; a court can dismiss the case on its own, and the tenant cannot waive the protection.¹¹

Discrimination and Source of Income

Philadelphia’s Fair Practices Ordinance, at § 9-1101 and following, covers a longer list of protected classes than federal fair housing law. Beyond race, color, religion, sex, national origin, familial status, and disability, the city adds age, sexual orientation, gender identity, marital status, genetic information, status as a victim of domestic or sexual violence, and source of income.

Source of income trips up more landlords than any other category. The city’s definition covers any lawful income and explicitly includes public assistance and housing assistance programs such as Housing Choice Vouchers. Refusing to rent to a voucher holder, or treating a voucher application differently, violates the ordinance. Advertising a unit as “no Section 8” is a violation on its face.

Free Legal Help for Tenants Facing Eviction

Philadelphia’s Right to Counsel program provides free legal representation to tenants who live in a designated zip code and earn less than 200% of the federal poverty level. As of 2026, the eligible zip codes are 19121, 19124, 19131, 19132, 19134, 19139, 19141, 19144, 19153, and 19154, with 19131 and 19153 added in 2026.

Any tenant who thinks they qualify should call the Philly Tenant Hotline at 267-443-2500 as soon as they receive a court date rather than waiting to be contacted. Tenants outside the covered zip codes or income limits can still call the same number for guidance.

1
City of Philadelphia. Get a Commercial Activity License
2
American Legal Publishing Corporation. Philadelphia Code 9-3902 – Rental Licenses
3
City of Philadelphia. Get a Rental License
4
American Legal Publishing Corporation. Philadelphia Code 6-803 – Lead Disclosure Obligation
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American Legal Publishing Corporation. Philadelphia Code 9-3903 – Certificate of Rental Suitability; Required Tenant Documents
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American Legal Publishing Corporation. Philadelphia Code 9-4800 – Responsibilities Concerning Bed Bug Infestation
7
Pennsylvania General Assembly. Pennsylvania Statutes Title 68 PS Real and Personal Property 250-511b
8
American Legal Publishing Corporation. Philadelphia Code 9-804 – Unfair Rental Practices
9
City of Philadelphia. Know Your Heat Rights – Staying Safe and Warm During Philadelphias Cold Months
10
The Philadelphia Code. The Philadelphia Property Maintenance Code
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American Legal Publishing Corporation. Philadelphia Code 9-811 – Eviction Diversion Program