I will be introducing legislation to amend the Landlord and Tenant Act of 1951 to allow landlords and tenants the option of a fee in lieu of traditional escrow funds (security deposits).
 
Currently, Pennsylvania law requires tenants to pay escrow funds (security deposits) as a condition of occupancy. This can be a significant barrier for many renters, particularly those with limited savings. At the same time, landlords face administrative burdens in managing escrow accounts and complying with related regulations.
 
This bill will provide landlords and tenants with a new, flexible option: landlords may waive the escrow fund requirement, and tenants may choose to pay a fee instead. The fee may be fully or partially nonrefundable, but this must be clearly disclosed and acknowledged by the tenant. The fee can be used by landlords to purchase insurance for unpaid rent or damages. Tenants retain the right to opt for the traditional escrow fund instead of the fee. The fee option must be offered to all approved applicants equally, without discrimination. Tenants who initially choose the fee may later switch to paying the full escrow amount. All terms must be documented in writing, with clear disclosures regarding refundability and tenant obligations.
 
By giving renters, the option to rent without an upfront deposit, we would be removing a roadblock to housing, help landlords get their deposits upfront by offering alternatives, puts cash back into people’s pockets.  
 
Please join me in co-sponsoring this legislation.