Philadelphia, Pennsylvania Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Philadelphia?

Yes, short-term rentals are explicitly allowed in Philadelphia, PA. The City of Philadelphia permits the rental of homes or rooms for fewer than 30 days at a time, provided operators obtain the required licenses, permits, and comply with all applicable regulations. Philadelphia classifies short-term rentals into two distinct categories:

Limited Lodging: Short-term rental of a unit that has a primary resident
Visitor Accommodations: Short-term rental of a unit that does not have a primary resident

Both categories are legal when operated in full compliance with city requirements.

What do Airbnb hosts actually earn in Philadelphia?

Philadelphia hosts earn a median $29,621/year with $157 ADR and 66% occupancy.

Top performers pull in $44,908+ per year.

See the full Philadelphia market breakdown

How to Start a Short-Term Rental Business in Philadelphia

Step 1: Determine Your Rental Category

First, identify whether your property qualifies as Limited Lodging (you live there) or Visitor Accommodations (investment property without primary resident).

Step 2: Obtain Required Licenses and Permits

All operators must secure the following before listing:

Commercial Activity License (required for all STR operations)
Zoning Permit (category-specific)
Primary Category License (Limited Lodging Operator License or Rental License with hotel designation)
Philadelphia Business Tax Account ID (for tax compliance)

Step 3: Complete Application Process

Applications can be submitted:

Online: Through the eCLIPSE system (preferred method)
In-person: By appointment at the Permit and License Center
Virtual assistance: Schedule virtual appointments if needed

Step 4: Ensure Property Compliance

Install required safety equipment and meet all operational standards before hosting guests.

Step 5: Ongoing Compliance

Maintain licenses, pay taxes monthly, keep records, and renew licenses annually.

Required Documents, Permits, Licenses, and Guidelines

Commercial Activity License

Cost: No fee
Requirements:
- Tax account number or SSN
- Full tax compliance verification
- Ownership information (names of two largest interest holders or all persons with >49% ownership)
- Business Tax Account registration

Zoning Permits

Cost: $174 for additional uses
Limited Lodging Use: Required for properties with primary residents
Visitor Accommodations Use: Required for investment properties
Requirements:
- Proof of residency (ID card)
- Site plan
- Proper zoning district approval

Limited Lodging Operator License (Primary Residences)

Cost: $150 (annual)
Requirements:
- Commercial Activity License
- Zoning Permit for Limited Lodging and Household Living
- Proof of ownership (recorded deed) or owner approval with lease
- Certificate of Occupancy (if required based on occupancy)
- Licensing fees

Rental License with Hotel Designation (Non-Primary Residences)

Cost: $63 per unit (annual)
Requirements:
- Zoning Permit for Visitor Accommodations
- Commercial Activity License
- Proof of ownership or tenant authorization
- Certificate of Occupancy (if required)

Additional Documentation Requirements

Non-natural ownership: Provide names and addresses of individuals with >49% interest or top two interest holders
Recent property sales: Submit settlement sheet or deed
Tenant applications: Provide executed lease agreement

Specific Regulations for Short-Term Rentals

Safety Requirements

Smoke Alarms must be installed:

In each bedroom
In hallways immediately adjacent to bedrooms
On each floor, including basements

Carbon Monoxide Alarms must be installed:

Within 15 feet of bedroom entrances or beds in sleeping areas
Centrally on walls or ceilings (not in front of bathroom doors)
At least 5 feet from cooking appliances
Following smoke alarm installation requirements if using combination units

Operational Restrictions

Maximum occupancy: No more than three unrelated people total (including owner and renters)
Property appearance: Cannot post lodging signs or modify property to lose residential character
Guest hours: Allowed between 8:00 AM and midnight only
Noise: Excessive noise prohibited with fines and penalties for violations

Guest Information Requirements

Operators must provide renters with:

Trash and recycling collection days and disposal rules
Proper trash containers
Owner or designee contact information for complaint handling
Notice of guest hour restrictions and noise policies

Record-Keeping Requirements

Maintain records for minimum one year showing:

Property remained primary residence (for Limited Lodging)
Rental dates and duration
Number of renters per stay

Tax Obligations

City Hotel Tax: 8.5% of rental revenue (collected by platforms like Airbnb, or remitted monthly by operators)

Additional Taxes (based on operator status):

Net Profits Tax (NPT): 3.75% (residents), 3.44% (non-residents)
Business Income and Receipts Tax (BIRT): 5.81% net income tax on gross receipts >$100,000
Wage Tax: If employing staff (3.75% residents, 3.44% non-residents)

License Renewal and Display

All licenses must be renewed annually
License numbers must be clearly displayed in all advertisements
Non-compliance may result in fines and license suspension

Contact Information for Local Authority

Department of Licenses and Inspections (L&I)

Phone: 311 (within Philadelphia)
Phone: (215) 686-8686 (outside Philadelphia)
Online Contact: Submit requests through 311 online portal
Website: phila.gov/departments/department-of-licenses-and-inspections/

Additional Contact Methods

Virtual Appointments: Available for application assistance
In-Person: Permit and License Center (appointments required)
FAQ Support: Extensive online resources available

Department of Revenue (Tax Issues)

Business Tax Account: Required for tax compliance
Hotel Tax Remittance: Monthly filing required

Source Links

Official Philadelphia Government Resources

Additional Resources

This guide provides the essential framework for operating a compliant short-term rental business in Philadelphia. Always consult the most current city resources and consider legal counsel for complex situations.

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Ask the AI Advisor about Philadelphia

Philadelphia sits in the southeastern corner of Pennsylvania, occupying a unique position as a city that is also its own county — Philadelphia County. With an approximate population of 1.6 million, it is the largest city in the state and the sixth largest in the country. Steeped in Revolutionary War history and recognized as the birthplace of American independence, Philadelphia carries a distinctive blend of cobblestone Old City charm and energetic modern urban life. It is best known as the home of Independence Hall and the Liberty Bell, and serves as a gateway to the broader Mid-Atlantic region. The city lies about 95 miles southwest of New York City, roughly a two-hour drive northeast along Interstate 95.

Independence National Historical Park anchors the historic Old City neighborhood and draws visitors interested in the founding of the United States. The park encompasses Independence Hall, where the Declaration of Independence and the U.S. Constitution were debated and signed, along with the Liberty Bell Center. Located at the heart of downtown Philadelphia, it is within walking distance of most central hotels and short-term rentals, making it a frequent anchor for first-time visitors.

About 20 miles northwest of the city, Valley Forge National Historical Park preserves the encampment site where General George Washington and the Continental Army spent the winter of 1777–1778. The park offers miles of hiking and biking trails, reconstructed log cabins, and a visitor center, and it is roughly a 30- to 40-minute drive from Center City. It provides a quieter, nature-oriented counterpoint to the urban museum circuit.

The Philadelphia Museum of Art, perched at the end of the Benjamin Franklin Parkway, is one of the largest art museums in the country. Its collection spans European masters, American works, and Asian art, and its exterior steps — featured in the "Rocky" films — have become an attraction in their own right. Just across the Schuylkill River, the museum's grounds connect to Fairmount Park, an expansive system of green space that gives the city a remarkably leafy character.

Further afield, Longwood Gardens lies about 30 miles southwest of Philadelphia in Kennett Square, Pennsylvania. The roughly 1,100-acre botanical garden features carefully designed indoor and outdoor landscapes, fountains, and seasonal displays, and it is approximately a 45-minute drive from Center City. It is one of the most visited horticultural destinations in the Mid-Atlantic.

For short-term rental investors, Philadelphia offers a compelling mix of year-round demand drivers: dense concentrations of historic landmarks, walkable neighborhoods like Old City, Rittenhouse Row, and Northern Liberties, major professional and collegiate sports venues, and a steady flow of leisure and convention travelers. Its location between New York City and Washington, D.C., combined with a relatively affordable real-estate market compared to those neighbors, makes it a practical base for both short leisure stays and longer visits exploring the broader Mid-Atlantic.