Two new bills aimed at making renting more affordable in Philadelphia became law this week.<\/p>\n
One bill caps apartment application fees at the cost a property owner incurs for a background check or credit check \u2014 or $50, whichever is less. It also forbids landlords from charging the same prospective tenant more than one background check fee in a 12-month period.<\/p>\n
The other bill allows prospective tenants to pay a portion of their security deposits in installments, if the deposit is more than one month’s rent.<\/p>\n
Councilmember Rue Landau was the lead sponsor of the bills. With the legislation on the floor earlier this year, she noted that tenants are struggling, spend a significant portion of their incomes on rent, and face obstacles to moving to a new place.<\/p>\n
“It’s about ensuring that people aren’t priced out of housing before they even have a chance to sign a lease,” Landau said in a Jan. 30 council session<\/a>.<\/p>\n “People are being asked for three months’ rent up front with the median rent of $1,800. That is a hurdle many can’t overcome,” she added.<\/p>\n Mayor Cherelle Parker signed the bills on Sept. 3, and they took effect 90 days after signing \u2014 that was Tuesday, Dec. 2.<\/p>\n The changes apply to any residential lease that is executed or renewed after the bill takes effect.<\/p>\n Fine print of the new Philadelphia rental security deposit law<\/p>\n The law on security deposits allows landlords to collect a deposit equal to one month’s rent as a lump sum.<\/p>\n However, if the landlord charges more than one month’s rent for a deposit, the additional amount can be paid in three equal payments due up to once a month. Installment payments can’t start until the month after the tenant’s lease begins.<\/p>\n Landlords also must charged tenants the same amounts for security deposits, whether they are paid in full or in installments, the text of the law states.<\/p>\n This provision regarding installment payments doesn’t apply to small landlords who manage two or fewer rental units.<\/p>\n Read the full Philadelphia rental law changes yourself<\/p>\n These two bills make up what Landau calls her “Move In Affordability Plan.”<\/p>\n You can find the bill on application fees, Bill No. 250045, on the city council website here<\/a>.<\/p>\n You can find the bill on security deposits, Bill No. 250044-A, on the city council website here<\/a>.<\/p>\n Renting in Philadelphia: what the numbers show\u00a0<\/p>\n In 2023, CBS News Philadelphia reported that\u00a0data from the U.S. Census Bureau showed over 80,000 Philadelphians were spending half or more of their monthly income<\/a> on rent.\u00a0<\/p>\n