Short-term rentals in Philadelphia are residential properties rented out for fewer than 30 consecutive days. Both property owners and agents can apply for the necessary licenses and permits.
Philadelphia splits short-term rentals into two categories based on whether the unit is a primary residence:
- Limited lodging: The unit has a primary resident.
- Visitor accommodation: The unit does not have a primary resident.
To qualify as a primary resident, the operator must live in the unit for more than half the year. Regardless of category, all operators need a Commercial Activity License before renting.
Key Takeaways
- Philadelphia defines short-term rentals as stays of fewer than 30 consecutive days and regulates them as limited lodging (a primary resident lives on-site for more than half the year) or visitor accommodation (no primary resident).
- Zoning and where you can operate depends on the category: limited lodging typically are allowed in residential areas, while visitor accommodation generally is prohibited in residential areas and only permitted in specific districts (often commercial/industrial or certain high-density zones).
- No matter the category, operators need a Commercial Activity License before renting. Licensing is category-specific and must be secured before advertising, with inspections required for initial approval and renewals: Limited Lodging Operator License for limited lodging and a Rental License with a hotel designation for visitor accommodations.
Zoning and Property Restrictions
The type of Zoning Permit you’ll need depends on the rental category:
- Limited lodging: Requires a Zoning Permit for limited lodging use. Because limited lodging is an accessory use tied to the primary residence, you also need the proper zoning approval for Household Living. Limited lodging is generally allowed in residential areas.
- Visitor accommodation: Requires a Zoning Permit for visitor accommodation use. Visitor accommodations are not allowed in residential areas by default and are only permitted in specific zoning districts, typically commercial, industrial, or certain high-density residential districts.
License and Registration Requirements
Just as landlords need different zoning permits depending on the rental category, the same goes for operating licenses:
- Limited lodging: Limited Lodging Operator License
- Visitor accommodation: Rental License with a hotel designation
The proper license must be obtained before advertising, and licenses require inspections for initial approval and renewal.
Depending on the property and any changes to its use, you may also need a building permit or an updated Certificate of Occupancy (CO). Requirements vary by scenario, so operators should review the city’s licensing guidance to determine whether a CO or permit is triggered.
Other Requirements
License numbers must be included in all advertisements and listings.
Operational Requirements and Compliance Rules
When managing a short-term rental, landlords must meet specific requirements, such as not allowing more than three total occupants at a time (including the landlord, if present). Keeping records for at least one year showing that the remaining home space was their primary residence and the dates the home was rented is another stipulation.
Philadelphia requires limited lodgings to also meet certain standards:
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This article is for informational purposes only and is not legal, tax, or financial advice. The information presented here is a general overview and is not all-encompassing; it may not cover every requirement, exception, permitting process, enforcement practice, or recent update in each location. Short-term rental laws and tax rules vary by location and can change, so verify current requirements and consult a qualified attorney or professional for guidance.
FAQs
Are short-term rentals legal in Philadelphia?
Yes, short-term rentals are legal in Philadelphia if you follow the city’s licensing, zoning, and operating rules. Philadelphia regulates short-term rentals (stays under 30 consecutive days) under two categories: limited lodging (primary-residence unit) and visitor accommodation (non-primary-residence unit).
Do I need a license or permit in Philadelphia to operate a short-term rental?
Yes, all operators need a Commercial Activity License before renting, no matter which category you’re in. On top of that, you’ll need:
A Zoning Permit based on your rental type:
- Limited lodging: Zoning Permit for limited lodging use (and proper zoning approval for Household Living)
- Visitor accommodation: Zoning Permit for visitor accommodation use (only allowed in certain zoning districts, not typically by default in residential areas)
An operating license based on your rental type:
- Limited lodging: Limited Lodging Operator License
- Visitor accommodation: Rental License with a hotel designation
You may also need a building permit or updated Certificate of Occupancy (CO) depending on the property and any change of use.
Does a short-term rental have to be my primary residence in Philadelphia?
Not always. It depends on which category you operate under:
- No, if it’s a “visitor accommodation.” This category applies when the unit does not have a primary resident — but it’s not allowed in residential areas by default and is only permitted in specific zoning districts (often commercial, industrial, or certain high-density areas).
- Yes, if it’s “limited lodging.” Limited lodging requires a primary resident, meaning the operator must live in the unit more than half the year.
If you operate as limited lodging, you also need to keep records for at least one year showing it was your primary residence and the dates it was rented.
