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Rooted Management's Guide to Licensing and Compliance:

Its easier than you might think to rent out your property. You just need to follow a few simple steps and file some things with the city. Click Here for City of Philadelphia's rental licensing web page. Also, take a look at our step-by-step guide below. It may seem like a lot, but assuming your property is correctly zoned and free of hazards such as lead based paint, its really pretty simple:

 

How to Obtain a Rental License in Philadelphia

Acquiring a rental license in Philadelphia is essential for landlords who wish to lease their property legally. Here's a detailed guide to help you through the process:

 

Verify Zoning and Property Compliance

Check Zoning Requirements: Ensure the property is compliant with Philadelphia’s zoning regulations. You can verify zoning details through the City of Philadelphia’s Zoning Map.

 

Confirm Property Compliance: Ensure that the property meets all safety and building codes. This might involve inspections and updates to adhere to city standards. But this is unlikely unless there has been a change in use.

Register for an Employer Identification Number (EIN)

EIN Requirement: If you are operating as a business entity (LLC or corporation), you will need an EIN from the IRS. You can do that HERE.

Acquire a Business Income and Receipts Tax (BIRT) Account

Register for BIRT: Landlords must register for a BIRT account to report any rental income.

 

File Annually: Ensure you file your BIRT return annually to comply with Philadelphia tax requirements.

 

Obtain a Commercial Activity License (CAL)

Apply for CAL: All rental property owners must have a Commercial Activity License. You can apply online through the Philadelphia Department of Revenue using the eCLIPSE tool. 

Obtain Lead Certification

Lead Safety Certification: If your property was built before 1978, you must obtain a Lead Safe or Lead Free certification.

 

Submit Certification: Once obtained, submit the certification to the Philadelphia Department of Public Health. This must be done before you can apply for your rental license.

 

Apply for the Rental License

Submit Application: Complete the Rental License application, which can be submitted online through eCLIPSE.

 

Pay the Fee: As of the latest update, the fee is typically around $63, but it’s advised to check the current rate as it may change.

 

Renew Rental License Annually

Annual Renewal: Remember that rental licenses must be renewed annually. The city should remind you of this, but good to keep it in mind just in case. This too is done through eCLIPSE.

 

Additional Tips

Stay Informed: Regularly check for any updates or changes in the city’s rental licensing requirements.

 

Consult Professionals: Consider consulting with a real estate attorney or property management professionals (like us) to ensure all legal and regulatory requirements are met.

 

By following these steps, landlords in Philadelphia can secure a rental license, ensuring compliance with local laws and a smooth rental process.

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