Can I Airbnb in Philadelphia? Understanding the Rules

I recently got an inquiry from a client wondering what the rules were for AirBnB-ing a property in Philadelphia, so I thought this would be a good topic for the blog. As you might know, the rules changed a few years ago and became much more restrictive. There have been occasions where exceptions have been made with the help of a zoning attorney, but certainly there are no guarantees. Below is breakdown of the city's new policy. If you want to be able to AirBnB by right, these are your guidelines.

In Philadelphia, operating a short-term rental—defined as renting out a property or a portion of it for fewer than 30 days—requires adherence to specific regulations to ensure legal compliance. The requirements differ based on whether the property is your primary residence or not.

For Primary Residences (Limited Lodging):

1. Commercial Activity License: Obtain this free license, which is mandatory for all businesses operating in Philadelphia.

2. Zoning Permit for Limited Lodging: Secure this permit to confirm that your property’s use aligns with local zoning laws.

3. Limited Lodging Operator License: After acquiring the necessary zoning permit, apply for this license to legally operate your short-term rental.

For Non-Primary Residences (Visitor Accommodations):

1. Commercial Activity License: As with primary residences, this license is required.

2. Zoning Permit for Visitor Accommodation: Obtain this permit to ensure your property’s use complies with zoning regulations. *(see Zoning Permits for Visitor Accommodations below)

3. Rental License with Hotel Classification: Following the zoning permit approval, apply for this license to operate your property as a short-term rental.

Additional Requirements:

• Safety Measures: Install smoke alarms in each bedroom, hallways adjacent to bedrooms, and on every floor, including basements. Carbon monoxide detectors should be placed within 15 feet of all bedrooms.

• Occupancy Limits: The property cannot be occupied by more than three unrelated individuals simultaneously.

• Guest Restrictions: Inform renters that guests are only permitted between 8 a.m. and midnight. Excessive noise is prohibited, and violators may face fines.

• Tax Obligations: Hosts must collect and remit the City of Philadelphia Hotel Tax, which is 8.5% of the total amount paid by the guest. This tax is due on the 15th of each month for rentals in the prior month. 

It’s crucial to display your license numbers prominently on all advertisements for your short-term rental. Non-compliance can lead to significant fines and potential removal of your listing from platforms like Airbnb and Vrbo. 

Zoning Permit for Visitor Accommodation:

1. Zoning Districts: Visitor Accommodations are permitted in specific zoning districts, including:

• CMX-3

• CMX-4

• CMX-5

• CA-1

• CA-2

• RMX-1

• RMX-2

If your property is located outside these districts, obtaining the necessary zoning permit may be challenging. 

2. Overlay Restrictions: Certain overlay districts within the city may impose additional restrictions or prohibitions on Visitor Accommodations. It’s essential to review any applicable overlay provisions to ensure compliance. 

Application Process:

• Zoning Permit: Before applying for the Rental License with a hotel classification, you must first obtain a Zoning Permit for Visitor Accommodation. This permit confirms that your property’s use aligns with the city’s zoning regulations. 

• Rental License: Once the Zoning Permit is secured, you can proceed to apply for the Rental License with a hotel classification, which legally authorizes the operation of your short-term rental. 

It’s crucial to ensure that your property complies with all zoning requirements before offering it as a short-term rental. Non-compliance can lead to fines, legal challenges, and potential revocation of rental privileges.

For comprehensive information, including application processes, fees, and renewals, visit the City of Philadelphia’s official website.