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Philadelphia is set to implement a significant change in its rental laws starting December 2, 2025, aimed at providing greater flexibility and fairness for tenants. The new ordinance, known as Bill No. 250044-A, introduces a key provision requiring landlords to offer installment payment options for security deposits that exceed one month’s rent. This law is part of the city’s broader effort to ensure equitable housing practices and reduce financial barriers for renters.

Under the new rules, landlords must allow tenants to pay security deposits exceeding one month’s rent in three equal monthly installments. This option is mandatory for landlords managing three or more rental units, while smaller landlords with two or fewer units are exempt. The law also caps security deposits at the maximum amount permitted under state law. Non-compliance could result in penalties, including statutory damages equivalent to one month’s rent, as well as attorney fees for tenants. This change is expected to ease the financial burden on renters while promoting fair rental practices across Philadelphia.

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