On May 27, 2025, Philadelphia City Council’s Housing Committee advanced two significant pieces of legislation introduced by Councilmember Rue Landau: Bill 250044, which addresses security deposit regulations, and Bill 250045, which proposes a cap on rental application fees.
Thanks to coordinated advocacy efforts over the weekend leading up to the hearing, several key amendments were secured before the committee vote—amendments that reflect the concerns of the landlord community and provide more practical implementation for housing providers.
Bill 250044 – Security Deposit Regulations
This bill initially proposed new restrictions on how security deposits could be collected. The final version now includes a critical clarification:
- Security deposits equal to one month’s rent remain exempt from installment payment requirements.
- For deposits exceeding one month’s rent, landlords may collect one month upfront.
- The remaining balance may be paid in three equal monthly installments, beginning the month after the lease starts.
This amendment allows landlords to collect higher deposits when needed while ensuring tenants have a manageable payment structure.
Additionally, and a huge win for Hapco Philadelphia, was a last minute amendment that exempts any owner, landlord or other person operating or managing 2 or fewer rental units, from this requirement.
Bill 250045 – Rental Application Fee Cap
Originally proposed with a $20 cap, the amended bill now allows landlords to charge up to $50 for rental application fees—a more reasonable amount that better reflects the actual cost of screening.
Additionally, the bill was modified to remove a provision that would have allowed applicants to submit their own background checks from the previous 30 days. This change ensures landlords retain control over their tenant screening process and can maintain consistent standards.
What’s Next?
Both bills now move to the full City Council for consideration. Hapco Philadelphia will continue to closely monitor their progress and keep members informed of any changes or opportunities for further input.
These amendments represent a win for common sense—and for rental property owners committed to fair but practical housing policies.