A landlord who rented out their first home in Philadelphia once had a dispute with a tenant over the rent payment date. The issue arose because the payment date and late fee clauses were not clearly stated in the contract. After several months of back and forth, they ended the contract with some tension, and the property remained vacant for a few weeks afterward. Most of these issues can be avoided with proper preparation.

The first concern when renting out a property is usually how much to set the rent. As of August 2026, the average rent in Philadelphia is $1,600 per month (Zumper). Studios average $1,200, one-bedroom units are around $1,450, and two-bedroom units are about $1,700. Compared to the previous year, this is actually a decrease of 5.6 percent, so setting the price too high could result in a longer search for tenants. Conversely, setting it too low may reduce the opportunity to thoroughly review applications, so finding a balance is essential. Checking the actual prices of neighboring properties can provide more accuracy.

Once the rent is set, the next step is to advertise the property. Posting photos and details on Zillow Rental Manager or local rental platforms is standard. Photos taken in bright daylight tend to get better responses, and the more detailed you are about the number of rooms, pet policies, and parking availability, the fewer unnecessary inquiries you will receive. If multiple inquiries come in, it's helpful to establish a system for reviewing applications in the order they were received.

When inquiries come in, screening should be conducted. It's advisable to check credit scores, proof of income, and previous rental history. Many landlords use a guideline of around three times the rent for income. The earlier mentioned troubles could have been minimized if the rental history had been thoroughly checked during the screening process. If there are multiple applicants, applying the same criteria to everyone and keeping a record of the evaluation basis will make it easier to explain later.

The lease agreement should clearly outline the rent amount, payment date, late fees, security deposit, pet policies, and repair responsibilities. It's also good to include who is responsible for utilities, how many days in advance the landlord must notify the tenant before entering the property, and the renewal process after the contract expires. Any agreements made verbally will hold no weight if disputes arise later.

According to Pennsylvania state law, the security deposit can be up to two months' rent for the first year and one month's rent for subsequent years. The deposit must be returned within 30 days after the tenant moves out, or a written notice of deductions must be provided. It's also important to note that any security deposit over $100 must be kept in an escrow account, and failing to send this list on time can result in losing the right to make deductions. If a tenant stays for more than two years, it's also good to know that any interest accrued on the security deposit must be calculated and returned annually.

If rent is overdue, a 10-day notice to quit should be sent first. If the overdue amount is paid within this period, the contract continues as is. If the tenant still does not leave, formal legal proceedings must be initiated, and forcibly removing belongings or changing locks is prohibited in Philadelphia.

Reflecting on the earlier troubles, it was regrettable that the condition of the house was not documented with photos on the day the tenant moved in. Recording the state of the carpet and any wall scratches in advance can significantly reduce disputes during the security deposit settlement. Regular homeowners insurance may not cover all tenant-related damages, so it's wise to look into rental property insurance separately.

Tax and rental law information can vary by county. This article is not investment or legal advice, and it's advisable to consult with a professional before signing any contracts.