In 2024, Pennsylvania introduced significant changes to property and tenant laws that continue to impact landlords and renters in 2025. These reforms aim to enhance tenant protections, promote fair housing practices, and clarify landlord responsibilities.
Key Takeaways:
- Property Tax/Rent Rebate Expansion: Act 7 of 2023 expanded eligibility and increased rebates under the PTRR program, benefiting a larger number of Pennsylvanians, especially seniors.
- Equalized and Increased Income Caps: The income eligibility threshold for homeowners and renters was unified and raised to $45,000, with future adjustments linked to the cost of living.
- Reformed Security Deposit Laws: Amendments to security deposit laws enforce limits on amounts, define timelines for returns, and require landlords to provide itemized deduction lists.
- Elimination of Discriminatory Deed Language: A groundbreaking law facilitates the removal of restrictive racial, ethnic, or religious covenants from property deeds at no cost.
- Philadelphia’s Eviction Diversion Program: A permanent program requires landlords to engage in out-of-court negotiations with tenants before initiating eviction proceedings, effectively reducing eviction rates.
- Proposed New Renter Protections: Several bills are under consideration in 2025 that could further strengthen tenant rights and adjust rental regulations statewide.
Crucial PTRR Laws and Renters Reforms Explained
In a significant legislative move, Pennsylvania introduced major changes to property owner and tenant laws in 2024. Act 7 of 2023, a key part of this change, expanded the Property Tax/Rent Rebate (PTRR) program, marking the largest targeted tax cut for seniors in nearly two decades. The program now includes an increased standard rebate of up to $1,000 and raises income eligibility to $45,000 for both homeowners and renters, with future adjustments aligned with the cost of living.
The state’s security deposit laws have also been updated. These changes set clear limits on the amount landlords can collect and specify the timeline for returning deposits. Landlords are now required to provide tenants with a detailed list of any deductions from their security deposits, enhancing transparency and tenant rights.
Further advancing fair housing practices, a new law facilitates the removal of restrictive racial, ethnic, or religious covenants in property deeds, allowing for their removal without incurring fees. This law marks a significant step in addressing historical systemic racism in housing.
Additionally, Philadelphia’s eviction diversion program has become permanent as of 2024. This law requires landlords to engage in out-of-court mediation with tenants before filing for eviction. The program has significantly reduced eviction rates and is expected to continue in 2025. Landlords in Philadelphia must comply with this regulation before initiating eviction proceedings.
A Quick Overview of What PA Landlords Need to Know
PTRR Program Expansion:
- What It Is: The Property Tax/Rent Rebate (PTRR) program in Pennsylvania has been expanded due to new legislation (Act 7 of 2023). This program provides rebates on property taxes or rent paid by eligible individuals, primarily benefiting seniors and low-income residents.
- Landlord Perspective: As a landlord, it’s important to understand that more of your tenants, especially older ones, might now qualify for these rebates. This could impact their ability to afford rent or influence their decision to choose certain rental properties. Being informed about this program can also help you provide valuable information to your tenants, potentially enhancing landlord-tenant relationships.
Unified Income Caps:
- What It Is: The income eligibility threshold for both renters and homeowners to qualify for the PTRR program has been raised and equalized to $45,000. This means that both groups are now assessed under the same income criteria for rebate eligibility.
- Landlord Perspective: This change potentially broadens the pool of tenants who can afford your rental properties, as more people might have extra financial room due to these rebates. Understanding this shift is important for targeting the right tenant demographics and for any discussions about rent affordability with current or prospective tenants.
Security Deposit Regulations:
- What It Is: The 2024 law updates include specific amendments to how security deposits are handled. These changes include setting limits on the maximum amount a landlord can charge, specifying the timeframe within which the deposit must be returned after lease termination, and mandating that landlords provide a detailed list of any deductions made from the security deposit.
- Landlord Perspective: Compliance with these updated regulations is critical. You need to ensure that the security deposit amount you’re charging is within legal limits and that you’re returning these deposits within the stipulated timeframe. Additionally, being transparent with tenants by providing an itemized list of deductions from the security deposit can help avoid rent disputes and maintain a good landlord-tenant relationship.
Elimination of Discriminatory Deed Language:
- What It Is: Property owners can now remove restrictive racial, ethnic, or religious covenants from deeds for free.
- Landlord Perspective: This aligns with fair housing practices and legal requirements.
Philadelphia’s Eviction Diversion Program:
- What It Is: Landlords must attempt mediation before filing for eviction, reducing displacement and legal disputes.
- Landlord Perspective: If you own property in Philadelphia, compliance is required before pursuing eviction.
Proposed Legislation in 2025 That May Impact Landlords & Tenants
Several bills have been introduced in the Pennsylvania General Assembly in 2025 that could impact landlords and renters if enacted:
1. House Bill 72 – Tenant Protection Against Sudden Rent Hikes
- What It Proposes: This bill seeks to cap annual rent increases at 10% to prevent price gouging.
- Impact on Landlords: If passed, landlords would need to plan rental adjustments within this limit.
2. Senate Bill 144 – Just Cause Eviction Protections
- What It Proposes: Would require landlords to provide just cause for eviction rather than allowing lease terminations without explanation.
- Impact on Landlords: Landlords would need documented reasons (non-payment, lease violations, etc.) to proceed with evictions.
3. House Bill 310 – Application Fee Transparency
- What It Proposes: Landlords must disclose application fees upfront and refund fees when applications are denied.
- Impact on Landlords: Landlords who charge application fees would need to ensure compliance with these rules.
4. Senate Bill 200 – Right to Legal Counsel for Tenants
- What It Proposes: Provides free legal representation for tenants facing eviction.
- Impact on Landlords: Could lead to longer eviction proceedings and increased legal challenges from tenants.
Pennsylvania’s rental laws continue to evolve, with significant reforms in 2024 that remain in effect for 2025. Additionally, proposed legislation may introduce further changes, particularly around rent control, eviction protections, and application fees.
💡 Staying compliant with these updates is essential for landlords looking to avoid legal issues and maintain a successful rental business. If you’re unsure about how these laws affect your property, consulting a landlord-tenant attorney can provide clarity and guidance.
Also see our article on: How Trump’s Housing Policies Impact Pennsylvania’s Rental Market
Looking for an experienced landlord lawyer nearby? Latoison Law specializes in landlord-tenant law in Delaware, Montgomery, and Bucks counties. Call us at (610) 999-1439 for expert legal guidance.
