Screening tenants is a crucial step in managing rental properties, especially in a bustling city like Philadelphia, PA. Effective tenant screening not only ensures a harmonious landlord-tenant relationship, but also minimizes the risk of rental income loss and property damage.

This guide will provide a comprehensive overview of how Philadelphia landlords can conduct thorough tenant screenings, ensuring that they find responsible and reliable tenants for their properties.

Master the Art of Professional Screening While Staying Compliant with Philadelphia's Evolving Laws

Finding the right tenant is the most critical part of successful property management. However, in Philadelphia, "effective" screening now means balancing thoroughness with strict legal compliance. Between the Renters’ Access Act and new 2025 financial regulations, the landscape for landlords has shifted significantly.

1. Understand the Uniform Screening Criteria Requirement

Under the Renters' Access Act , before you even accept an application fee, you must provide the applicant with your written uniform screening criteria. This document must clearly state:

  • What rental history you review (limited to the last 4 years for evictions).
  • What credit history is relevant.
  • Income and ID verification requirements.

2. Respect the 2025 Application Fee Cap

As of late 2025, Philadelphia has officially capped rental application fees.

  • The Cap: You cannot charge more than $50 or the actual cost of the screening, whichever is less.
  • Transparency: You must provide the applicant with a copy of any reports (credit or background) that you ran.
  • No Hard Pulls: Landlords are now prohibited from performing "hard pull" credit checks that negatively impact a tenant's credit score.

3. Prohibited Screening Criteria (Section 9-810)

Philadelphia law is very specific about what you cannot use to reject a tenant:

  • Old Evictions: Any eviction record older than 4 years.
  • Resolved Evictions: Records that were withdrawn, sealed, or resulted in a judgment for the tenant.
  • COVID-19 Financials: Failure to pay rent or utility bills during the COVID-19 emergency period.
  • Blanket Exclusions: You cannot have a "No Evictions" policy. You must perform an individualized assessment.

4. The New Security Deposit Installment Law (Effective 2025)

If you manage 3 or more units and require a security deposit greater than one month's rent, you must now offer an installment plan.

  • The Rule: Tenants can pay one month's rent upfront, and the remainder in three equal monthly installments.
  • Small Landlord Exemption: If you own 2 or fewer units, you may still collect the full amount upfront.

5. Reasonable Accommodations: ESAs and Service Animals

Emotional Support Animals (ESAs) are not pets under the Fair Housing Act.

  • No Fees: You cannot charge pet deposits or monthly pet rent for an ESA.
  • Documentation: You can request a "Reasonable Accommodation" letter from a licensed healthcare professional, but you cannot ask about the nature of the tenant's disability.

6. The Rejection Process: 3-3-48-7 Rule

If you choose to reject an applicant, you must follow this timeline to avoid fines of up to $2,000:

  1. 3 Business Days: Send a written statement of reasons for rejection.
  2. 48 Hours: The applicant has 48 hours to notify you of their intent to dispute.
  3. 7 Business Days: The applicant has 7 days to provide evidence of mitigating circumstances.

Professional Tip: If a rejected applicant successfully disputes information and you own 5 or more units, you must offer them your next available unit of comparable size and price.

Need help navigating these complex regulations? Contact TrustArt Realty today for professional management that keeps you compliant and your investment safe.

To make things easier, it's best to work with a reliable property management company. Contact TrustArt Realty for your property management needs, and we will be happy to assist you!