PA - Security Deposit questions (interest, renewals)

[Craig C.]

In Pennsylvania, tenants who occupy a rental unit over 2 years are entitled to interest on the security deposit. My tenants signed a 1 year lease, then a 6 month extension (actually titled “lease renewal”), and then another 6 month extension. My question is about moving forward since they’ll be over the 24 month mark.

I haven’t refunded the original deposit (1 month rent) due to the extensions/renewals. At month 25 should I refund and start an entirely new lease? Would that lease then just state the “move-in” condition as per the original lease or should I do a full “damage inspection” with deductions and get a new deposit?

For below I’m referencing the PA Landlord Tenant Act, Title 68, sections 250.511 to 250.512 (https://www.thelpa.com/PA_landlord_tenant_act.pdf)

So, that means only interest earned from month 25 on, right? I’d keep anything earned from 0-24?

My lease say the SD is deposited in a “non-interest bearing account”- so is that actually void?

Mine isn't in an “escrow”, just a separate savings account. Should I move it??

Since I’m getting less than a 1% return, I’ll just keep the interest anyway, but do I need to send an annual notice to the tenant stating it’s because of a 1% fee?