Philadelphia's rental landscape is about to change dramatically, and if you're feeling overwhelmed by the new regulations, you're not alone. With major changes taking effect in just two days (December 2, 2025), property owners and managers across the city are scrambling to understand what these laws mean for their businesses.
Don't panic. While these new rules are comprehensive, they're designed to create a fairer rental market for everyone. With the right guidance and preparation, staying compliant isn't just possible: it's straightforward.
What's Happening Right Now
The Move-In Affordability Plan officially launches on December 2, 2025. This isn't just another minor regulatory tweak: it's a complete overhaul of how security deposits, application fees, and tenant protections work in Philadelphia. Any residential lease executed or renewed on or after this date must comply with the new requirements.
Time is running out to prepare, but it's not too late to get your properties in compliance.
The Five Major Changes Every Property Owner Must Know
1. Application Fees Are Now Capped
Gone are the days of charging whatever you want for rental applications. Philadelphia has capped application fees at $20 to $50 (depending on the specific ordinance). This eliminates junk fees that were pricing out potential tenants before they even got through the door.
What you need to do: Review your current application process and adjust any fees that exceed the new limits.
2. Security Deposit Installment Plans (The Big One)
This is the headline change that's got everyone talking. Under the new law, if you own three or more rental units and charge a security deposit exceeding one month's rent, you must offer tenants a choice between:
- Full payment upfront (the traditional way)
- Three equal monthly installments with the first payment due at move-in and the remaining two spread over the following months
Important notes:
- This only applies to landlords with three or more units
- The total amount charged remains exactly the same
- You cannot charge extra fees for the installment option
- Landlords with only one or two units are exempt
What you need to do: If you manage three or more units, prepare documentation outlining both payment options for any lease with security deposits over one month's rent.
3. Enhanced Anti-Discrimination Protections
Philadelphia's Fair Practices Ordinance now explicitly prohibits refusing applicants based on their source of income, including Section 8 housing vouchers and other assistance programs. You also cannot advertise restrictions against voucher holders or delay processing their paperwork.
What you need to do:
- Remove any language from listings that excludes voucher holders
- Train your staff on the new requirements
- Ensure your application process treats all income sources equally
4. Eviction Diversion Is Permanent
Before filing any eviction proceeding, landlords must attempt mediation and negotiation outside of court. This program, which started as a temporary COVID response, is now a permanent requirement that has significantly reduced eviction rates across the city.
What you need to do: Establish a process for documenting good-faith attempts at resolution before any eviction proceedings.
5. Security Deposits Must Follow State Maximums
All security deposits must comply with Pennsylvania's state-mandated maximums under state law (68 P.S. § 250.511a). This creates consistency across the state and prevents excessive security deposit demands.
Your Essential Licensing and Compliance Checklist
Operating without proper licensing in Philadelphia isn't just risky: it's financially devastating. Non-compliant landlords face daily fines, lose the right to collect rent, and cannot pursue evictions in court.
Required Licenses and Certifications
Every rental property owner must maintain:
- Rental License (renewed annually for each unit)
- Commercial Activity License (CAL) for leasing activities
- Philadelphia Tax Account Number (BIRT)
- Rent Suitability Certificate (issued within 60 days of new tenant move-in)
- Lead Paint Certification (for pre-1978 properties or those housing children)
- Bed Bug Certification and Information Brochure
- EPA Lead Paint Pamphlet and Partners for Good Housing Brochure
Special Requirements
If you live outside Philadelphia, you must designate a local managing agent. This person becomes your official representative for all city matters related to your rental properties.
Avoiding Costly Non-Compliance Penalties
The consequences of ignoring these new laws are severe:
- Daily fines that accumulate quickly
- Loss of rent collection rights until compliance is achieved
- Inability to pursue evictions in municipal court
- Statutory damages up to one month's rent plus attorney fees for security deposit violations
- Additional penalties for ongoing code violations
Your Step-by-Step Compliance Action Plan
Immediate Actions (Before December 2)
- Audit your current leases for any renewals or new agreements after December 2
- Verify all rental licenses are current and up-to-date
- Check certification status for lead paint, bed bugs, and rent suitability
- Review application fees and adjust to meet new caps
- Prepare security deposit options if you manage three or more units
Documentation Essentials
Maintain organized files containing:
- Current copies of all licenses and certifications
- Records of all tenant communications
- Signed lease agreements with compliant terms
- Security deposit documentation and payment arrangements
- Mediation attempts for any tenant disputes
For Multi-Unit Landlords
If you own three or more units, create clear documentation explaining security deposit payment options. Include this information in your lease agreements and make sure your staff understands how to present these options to prospective tenants.
Long-Term Success Strategies
Stay Informed
Philadelphia's rental regulations evolve frequently. Subscribe to city updates and join local landlord associations to stay ahead of changes rather than scrambling to catch up.
Build Relationships
The new mediation requirements aren't just legal obligations: they're opportunities to resolve issues before they become expensive legal battles. Invest time in tenant communication and problem-solving.
Professional Support
When compliance questions arise, consulting with experienced property management professionals or landlord-tenant attorneys provides clarity and protects your investment. The cost of professional guidance is minimal compared to the penalties for non-compliance.
Don't Navigate This Alone
Philadelphia's new rental laws represent a significant shift in how rental properties are managed in the city. While the changes may seem overwhelming, they're manageable with proper preparation and professional guidance.
At C&A Property Services, we've been helping Philadelphia property owners navigate complex compliance requirements for years. Our team stays current with every regulatory change, ensuring your properties remain compliant while maximizing your investment returns.
We understand that every property portfolio is unique, which is why we offer personalized compliance solutions tailored to your specific situation. Whether you own a single rental unit or manage dozens of properties across the city, we can help you understand exactly what these new laws mean for your business and create a compliance strategy that protects your interests.
Ready to ensure your properties are fully compliant with Philadelphia's new rental laws? Contact C&A Property Services today to discuss your personalized compliance strategy. Don't wait until December 2: let's get your properties prepared now.
Visit our website or call us to schedule a consultation about your compliance needs. Your peace of mind is worth the conversation.
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