Philadelphia City Council has passed Bill No. 250044-A, a major update to the City’s Landlord and Tenant regulations that changes how security deposits are collected for residential rentals. The legislation, introduced by Councilmember Rue Landau, was approved as part of broader efforts to improve housing affordability and reduce upfront move-in costs for renters across the city.
What Bill No. 250044-A Does
At its core, Bill 250044-A amends Chapter 9-800 of The Philadelphia Code to redefine security deposit standards and offer renters more flexibility when paying them. Under the new law:
- Security deposit limits must stay within state-set maximums (as defined by Pennsylvania law).
- If the security deposit is equal to or less than one month’s rent, landlords can collect it in a single lump sum at the start of the lease.
- If the deposit exceeds one month’s rent, landlords must offer tenants a choice:
1) Pay the full amount upfront, or
2) Pay a portion upfront (equal to one month’s rent) and then the remainder in three equal monthly installments due no more than once per month, beginning the month after the lease starts. - The total amount charged cannot change based on the payment option selected.
Enforcement & Remedies
Any violation of the security deposit rules can be treated as an unfair rental practice. Tenants who are harmed by non-compliance can seek legal remedies in court, including actual damages or statutory damages up to one month’s rent, and potentially attorney’s fees and costs.
How New Age is Adjusting Its Move-in Fund Policies
Under Philadelphia’s prior landlord–tenant rules, any prepaid rent beyond the first month (including last month’s rent) was legally treated as part of the security deposit, even if it was labeled as “rent.” As a result, New Age’s structure of first month, last month, and a separate security deposit actually meant tenants were paying two months’ worth of security deposit, not one.
Rather than having tenants choose between paying the deposit up front and paying in installments, New Age Realty Group, Inc. is removing its requirement to pre-pay last month’s rent entirely. We will continue collecting a holding fee of 1 month’s rent prior to running an application, which will then be applied to the security deposit, as well as first month’s rent prior to move-in.
Why This Matters for Renters
Security deposits are often one of the biggest upfront financial barriers to securing housing in Philadelphia. With rents remaining high and wages lagging, many prospective tenants, especially those with limited savings, find move-in costs prohibitive.
By spreading deposit payments over time, Bill 250044-A aims to:
- Reduce initial out-of-pocket expenses required to secure a lease.
- Help renters on tight budgets, including young professionals, lower-income residents, and families transitioning between homes.
- Increase housing access and mobility for residents across neighborhoods.
This aligns with broader housing affordability initiatives Council has considered, which also include fee caps and other renter protections.
What This Means for Landlords
While the law introduces new compliance requirements for landlords, specifically those owning three or more units, it doesn’t change how much landlords can charge in total. Instead, it adjusts how deposits can be collected.
Landlords will need to:
- Update lease documents and payment processing systems to reflect installment options.
- Train leasing staff on tenants’ rights to choose between payment schedules.
- Ensure compliance to avoid legal risks associated with unfair rental practice claims.
Many property managers and owner associations have been tracking developments on this bill as it moved through committee and Council deliberations.
When the Law Takes Effect
Though City Council passed Bill 250044-A earlier in 2025, the law became effective 90 days after adoption and now applies to residential leases that are executed or renewed after December 2, 2025. This gives landlords and tenants time to prepare for the change during upcoming lease cycles.
A Step Toward More Affordable Housing
Bill No. 250044-A represents a targeted but impactful piece of housing policy. By thoughtfully addressing the upfront cost challenges that many renters face, Philadelphia is taking a measurable step toward move-in affordability, which is a key element of broader efforts to make housing more accessible and equitable for all residents.
As the law is now in effect, both renters and housing providers will begin adjusting to the new rules, and its real-world impact will continue to unfold over the coming months.