Philadelphia Council considers bills to reduce high rental move-in costs

The Committee on Housing, Neighborhood Development, and The Homeless convened on May 27, 2025, to discuss pressing issues surrounding housing affordability in Philadelphia. The meeting highlighted the significant financial barriers faced by renters in the city, particularly those with low incomes.

A key point of discussion was the high upfront costs associated with relocating to new rental units. It was noted that these costs can reach as much as three months' rent, alongside application fees that tenants incur while searching for housing. With the average rental unit in Philadelphia starting at $1,500, the total upfront cost can easily exceed $5,000. This financial burden disproportionately affects households earning at or below 25% of the federal poverty limit, which is approximately $33,312 for a family of three.

The committee examined the impact of existing requirements that mandate payment of first month’s rent, last month’s rent, and a security deposit upon moving in. These requirements can severely limit the ability of vulnerable families to secure safe and affordable housing. Many renters are already cost-burdened, spending more than 30% of their monthly income on housing expenses.

Community Legal Services expressed support for two proposed bills aimed at alleviating these burdens. Bill number 250044 would introduce a payment plan option for security deposits, while Bill number 250045 would limit the application fees landlords can charge. These measures are seen as essential steps to reduce the financial barriers that prevent many Philadelphians from accessing stable housing.

The committee acknowledged that approximately 50% of the city’s residents live in rental housing, and rising costs, along with stringent credit and income requirements, further complicate the housing search for many. The proposed legislation is expected to benefit over 15,000 residents facing eviction each year, as well as those navigating the challenges of planned relocations.

In conclusion, the meeting underscored the urgent need for legislative action to address the financial obstacles renters face in Philadelphia. The committee looks forward to advancing these bills to improve housing access for all residents.