Property Management
Under Pennsylvania's Landlord and Tenant Act, the maximum security deposit a landlord may collect after the first year of tenancy is:
ATwo months' rent
BOne and one-half months' rent
COne month's rent✓ Correct
DThere is no statutory limit after the first year
Explanation
Pennsylvania's Landlord and Tenant Act limits security deposits to two months' rent during the first year and one month's rent thereafter. After the second year of a tenancy, landlords may not hold more than one month's rent regardless of any rent increases. If the deposit exceeds $100, the landlord must hold it in an interest-bearing escrow account and credit the interest to the tenant annually or apply it to rent.
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