What's Happening?
Pennsylvania Governor Shapiro recently signed two bills into law, Act 64 of 2026 and Act 67 of 2026, which amend the Pennsylvania Landlord and Tenant Act. These new laws, effective December 21, 2026, will significantly impact landlords' operations across
the state. Act 64 mandates that landlords disclose parking availability and associated fees within their leases. Failure to do so implies no parking is provided and no fees are charged. This act also prohibits landlords from altering parking fees during a lease term, with exceptions only if parking availability changes or if the landlord's fees to a third-party parking provider change, provided the lease explicitly allows for such adjustments. Violations of Act 64 could result in landlords reimbursing tenants for all parking fees paid. Act 67 introduces limitations on the application fees landlords can charge prospective tenants, restricting them to an amount 'reasonably related to the actual administrative expenses' incurred during the application process. This means landlords must ensure their application fees do not include any 'profit' and are required to maintain records of actual costs to address potential disputes.
Why It's Important?
These new Pennsylvania laws are crucial for both landlords and tenants, aiming to increase transparency and fairness in rental agreements. For landlords, the legislation necessitates a thorough review and potential revision of existing lease agreements and application fee structures to ensure compliance. Non-compliance carries financial penalties, such as reimbursing tenants for parking fees, and could lead to legal disputes. The requirement to document actual administrative costs for application fees introduces a new layer of administrative burden but also provides a clear defense against claims of excessive charges. For tenants, these laws offer greater protection against unexpected costs and arbitrary fee increases. The clear disclosure of parking fees and the cap on application fees provide more predictability and reduce the financial barriers to securing housing. This legislative action reflects a broader trend towards consumer protection in the housing market, potentially influencing similar legislative efforts in other states and setting a precedent for how rental-related fees are regulated.
What's Next?
As the new laws take effect on December 21, 2026, Pennsylvania landlords must promptly consult with their attorneys to ensure their leases and application processes are fully compliant. This will involve updating lease templates to include the required parking disclosures and reviewing application fee calculations to align with the 'actual administrative expenses' standard. Landlords will also need to establish robust record-keeping practices for application-related costs. Tenants, on the other hand, should familiarize themselves with these new protections to understand their rights regarding parking fees and application charges. Legal professionals, such as Steve Williams and Aurora Lynd at Cohen Seglias, are available to provide guidance on these changes. The implementation of these laws may lead to an initial period of adjustment and potential legal challenges as interpretations are tested, but ultimately, they are expected to standardize practices and reduce disputes in the Pennsylvania rental market.
Beyond the Headlines
The enactment of Act 64 and Act 67 in Pennsylvania highlights a growing legislative focus on consumer protection within the housing sector, moving beyond basic lease terms to scrutinize ancillary fees. This shift reflects an understanding that seemingly minor charges, like parking and application fees, can significantly impact housing affordability and accessibility. The emphasis on 'actual administrative expenses' for application fees, rather than allowing for profit, could set a precedent for how other service-related fees are regulated in various industries, promoting cost transparency and fairness. Ethically, these laws reinforce the principle that essential services should not be subject to exploitative pricing. Culturally, they contribute to a broader narrative of tenant rights and landlord accountability, potentially empowering tenant advocacy groups and fostering a more equitable housing environment. This legislative move could also spur technological solutions for landlords to efficiently track and justify administrative costs, further integrating compliance into property management practices.
