Two new bills aimed at making renting more affordable in Philadelphia became law this week.

One bill caps apartment application fees at the cost a property owner incurs for a background check or credit check — or $50, whichever is less. It also forbids landlords from charging the same prospective tenant more than one background check fee in a 12-month period.

The other bill allows prospective tenants to pay a portion of their security deposits in installments if the deposit is more than one month's rent.

Councilmember Rue Landau was the lead sponsor of the bills. With the legislation on the floor earlier this year, she noted that tenants are struggling, spend a significant portion of their incomes on rent and face obstacles to moving to a new place.

"It's about ensuring that people aren't priced out of housing before they even have a chance to sign a lease," Landau said in a Jan. 30 council session. "People are being asked for three months' rent up front with the median rent of $1,800. That is a hurdle many can't overcome."

Mayor Cherelle Parker signed the bills on Sept. 3, and they took effect 90 days after signing — that was Tuesday, Dec. 2.

The changes apply to any residential lease that is executed or renewed after the bill takes effect.

Fine print of the new Philadelphia rental security deposit law

The law on security deposits allows landlords to collect a deposit equal to one month's rent as a lump sum.

However, if the landlord charges more than one month's rent for a deposit, the additional amount can be paid in three equal payments due up to once a month. Installment payments can't start until the month after the tenant's lease begins.

Landlords also must charge tenants the same amounts for security deposits, whether they are paid in full or in installments, the text of the law states.

This provision regarding installment payments doesn't apply to small landlords who manage two or fewer rental units.

Read the full Philadelphia rental law changes yourself

These two bills make up what Landau calls her "Move In Affordability Plan."

You can find the bill on application fees, Bill No. 250045, on the city council website here.

You can find the bill on security deposits, Bill No. 250044-A, on the city council website here.

Renting in Philadelphia: what the numbers show 

In 2023, CBS News Philadelphia reported that data from the U.S. Census Bureau showed over 80,000 Philadelphians were spending half or more of their monthly income on rent. 

Region-wide, Cumberland County, New Jersey, was the most rent-burdened area, with the 2023 data showing 40% of renters spent half their income or more on rent.