COUNCILMEMBER RUE LANDAU INTRODUCES MOVE-IN AFFORDABILITY PLAN TO CUT RENTAL FEES AND EASE HOUSING COSTS FOR RENTERS

Legislation will cap junk application fees and allow renters to pay security deposits in installments, making housing more accessible for all Philadelphians

Philadelphia, PA – January 30, 2025 – Today, Councilmember Rue Landau introduced the Move-in Affordability Plan, a package of legislation aimed at reducing excessive rental fees and making housing more accessible for Philadelphians. The plan directly addresses two of the biggest financial barriers renters face when trying to secure housing: high application fees and large upfront security deposits.

“The high costs associated with securing a rental unit are simply too much for many Philadelphians, especially those with limited income or complex rental histories,” said Councilmember Landau, who worked as a tenant lawyer for several years. “These bills will help reduce the burden of upfront costs by regulating junk applications fees and allowing tenants to pay security deposits in installments, making it easier for individuals and families to secure housing and stay in their homes.”

The Move-in Affordability Plan includes two key bills designed to ease the financial burden on renters. The first bill caps rental application fees at $20—eliminating excessive charges that force tenants to pay hundreds just to apply for housing. The second bill allows renters to pay their security deposits in up to four installments, making it easier for people to move in without needing thousands of dollars upfront. Together, these measures will remove unnecessary barriers to housing, protect renters from predatory fees, and help more Philadelphians secure safe, affordable homes.

“We strongly support the Move-in Affordability Plan that Councilmember At-Large Landau introduced to Council this morning,” said Jacob Speidel, Esq., Director of Tenant Rights at the SeniorLAW Center, “As attorneys working with older tenants in Philadelphia every day, we frequently serve vulnerable older tenants on fixed incomes who can afford rent but are unable to secure suitable housing due to prohibitively expensive upfront costs. This legislation package will help to remove cost barriers for older, low-income Philadelphians and allow them to more easily find and secure safe, affordable housing, preventing homelessness and empowering them to age in place with dignity.”

Philadelphia is home to one of the largest renter populations in the country, with nearly half of all households renting their homes. But for 48.5% of those renters, housing is unaffordable, as they spend 30% or more of their income on rent and utilities. Meanwhile, rents are at historic highs, while wages have not kept pace—pushing more residents into housing insecurity.

Key Legislation in the Move-in Affordability Plan

✅ Capping Excessive Application Fees (Bill #2500XX)

• Why it matters: Application fees in Philadelphia are unregulated and can range from $50 to $200 per application—forcing renters to pay hundreds of dollars just to apply for housing they may never get.
• What this bill does:
  • Caps rental application fees at $20 or the actual cost of a background check, whichever is lower.
  • Prevents landlords from charging multiple fees for the same tenant in a year.
  • Allows renters to provide their own background check if it’s from an accredited agency within the last 30 days.

✅ Reducing Upfront Security Deposit Costs (Bill #2500XY)

• Why it matters: Many renters must pay three months’ rent (first month, last month, security deposit) or more upfront, creating an impossible financial hurdle —especially for low-income families, seniors, and those transitioning out of homelessness.
• What this bill does:
  • Codifies PA state law into Philadelphia’s housing code to ensure landlords cannot charge more than two months’ rent as a security deposit, hold more than one month’s rent after the first year, and must return deposits within 30 days of move-out.
  • Allows renters to pay security deposits in up to four monthly installments, making move-in costs more manageable.

Housing Crisis by the Numbers

📌 Nearly half of Philadelphia households rent their homes.
📌 48.5% of renters are cost-burdened, spending 30% or more of their income on rent and utilities.
📌 Rental costs have soared—with one-bedroom apartments averaging $1,499 and two-bedroom units at $1,750.
📌 In the last quarter of 2024, the median rent hit $1,565 per month.
📌 The average renter earns $58,970, but they need $74,600 to comfortably afford a typical apartment.

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About Councilmember Rue Landau

About Philadelphia City Council