Important Update for Landlords: Philadelphia’s New Rental Laws and License Requirements (2025)
As Philadelphia continues to strengthen its rental housing standards, recent changes in law directly impact landlords and property managers. At TCS Management, we’re committed to helping you navigate these updates—ensuring you remain compliant, avoid penalties, and provide quality housing to tenants.
Key Changes in Philadelphia’s Rental Laws (2025)
1. Caps on Rental Application Fees
Philadelphia City Council passed new legislation capping rental application fees at $20 (some reports indicate up to $50, depending on the final bill version). This eliminates unnecessary “junk fees” and makes moving into a new home more affordable for tenants.
2. Security Deposit Installment Plans
For landlords who own three or more units, there are new requirements regarding security deposits:
- If requesting more than one month’s security deposit, landlords must allow tenants to pay the excess deposit in three equal monthly installments after move-in.
- This regulation aims to ease the burden of upfront costs and does not apply to “small landlords”—those with only one or two rentals.
3. Anti-Discrimination Protections
Philadelphia’s Fair Practices Ordinance has been expanded:
- Landlords may not refuse applicants or tenants based on source of income, including Section 8 and other housing vouchers.
- Advertising or communicating refusal based on housing vouchers is now explicitly illegal.
- Landlords must promptly complete all paperwork for rental vouchers and cannot delay processing.
4. Enhanced Eviction Diversion and Tenant Protections
- Eviction Diversion: Before initiating eviction, landlords are now required to attempt out-of-court negotiation with tenants.
- Repayment Plans and Mediation: These measures are designed to reduce evictions and provide tenants with more options.
Rental License Requirements for Landlords
Operating any rental property in Philadelphia without meeting license requirements exposes you to fines and legal barriers.
What You Need to Rent Legally
- Rental License: Every unit must be covered by a valid rental license, renewable annually.
- Commercial Activity License (CAL): This is required for any business activity—including leasing property.
- Philadelphia Tax Account Number (Business Tax Account, BIRT).
- Rent Suitability Certificate: Issued within 60 days of move-in.
- Lead Paint Certification: Especially if the property was built before 1978 or houses young children.
- Bed Bug Certification & Brochure: Recent addition to required documentation.
- Partners for Good Housing Brochure, EPA Lead Paint Pamphlet, and lease documentation.
- Managing Agent: If you reside outside Philadelphia, you must designate a local agent.
Maintaining Your License
- Your rental license is valid for one year and must be renewed annually on time to avoid penalties.
- Non-compliance consequences include daily fines, inability to collect rent, and loss of eviction rights in court.
Inspections and Compliance
- A property must be in good repair and compliant with City codes.
- No open violations: Unresolved code violations can block your license renewal or lead to additional penalties.
Best Practices for Philadelphia Landlords
- Stay Informed: Laws and fees (including rent increases, deposits, and fair housing requirements) adapt frequently in Philadelphia. Monitor city government updates and consult professionals if unsure.
- Document Everything: Maintain copies of all licenses, certificates, brochures, and tenant communications.
- Act Promptly: File paperwork and renewals as soon as possible to avoid end-of-year backlogs.
- Work Collaboratively: Engage tenant mediation early to resolve disputes.
Quick Checklist for Compliance
- A rental license is required for all rental units and must be renewed annually.
- All landlords need a Commercial Activity License and a Business Tax Account, which are obtained as needed.
- A Rent Suitability Certificate must be provided to new tenants at the start of every new tenancy.
- Lead Paint Certification is mandatory for properties built before 1978 or those occupied by children, and must be updated according to legal guidelines.
- Finally, a Bed Bug Certification is required for all rentals at the beginning of every new tenancy.
If you’re unsure about your compliance status or need assistance with Philadelphia’s licensing process, TCS Management is here to help. Our team stays updated on all city requirements and offers guidance every step of the way.
