Renting out a home in Philadelphia requires compliance with all state, local, and federal laws. These include fair housing laws, security deposit laws, and eviction laws. You need a home that’s habitable and safe.
In addition to the laws that are on the books, there are also regulatory standards in place to protect you, your tenants, and your property.
Let’s take a look at what’s required of rental property owners in Philadelphia and how you can make sure you’re meeting all of those requirements.
Regulatory Compliance and the Philadelphia Rental License
Renting out a home without a license can cost you $300 per day in fines. You don’t want to violate this regulation.
You need a rental license to lease housing units in a multi-family building or a single-family home. You can apply for the license or your Philadelphia property manager can obtain one for you. These licenses are approved and issued by the Department of Licenses and Inspections (L&I).
You’ll need this license unless one of the following conditions is met:
- You’re renting out a property to a family member, and you’re not collecting any rent. If you find yourself in this position, you still need to submit an Affidavit of Non-Rental. This document must be notarized and provided to L&I.
- You’re renting out a property under the limited lodging requirements, in which case a Limited Lodging Operator License is required.
Don’t be confused by the rental license. It’s not new, but it was previously called a housing inspection license.
Certificate of Rental Suitability
Another item on your legal compliance checklist is the Certificate of Rental Suitability.
What is this? It’s a notice that confirms your property is safe and habitable and ready to be occupied.
When you’re renting out a residential property in Philadelphia, you must give your tenants a Certificate of Rental Suitability before they move in.
In order to qualify for this certificate, you’ll need to be sure you don’t have any outstanding violation notices related to the property, except for violations pending appeal where the owner has notified L&I. The following requirements are in place for this certificate:
- The rental property must be safe and habitable.
- The property must have fire protection and smoke detectors that are tested and in good working order.
- The owner must maintain the property throughout the lease period.
This certificate must be renewed every time a new tenant is moving into your property. You also have to renew the certificate when you renew the lease agreement with an existing tenant.
There is no cost to owners who apply for this certificate. You’ll need to provide your rental license number, and you can have your Philadelphia property manager obtain this certificate on your behalf.
Philadelphia’s Codes for Rental Property Maintenance
The city of Philadelphia requires landlords to meet specific standards cited under the city’s extensive property maintenance, fire, administrative, and zoning codes.
Each of these codes is hundreds of pages long, and unless you’re willing to dive into the deep details, you’ll want to talk with a Philadelphia property manager who can help you stay compliant without losing your mind over the way things change constantly.
The general goal, according to the property maintenance code, is that rentals be in “good repair, structurally sound, and in a sanitary condition.”
The city’s Department of Licenses and Inspections works with the courts to enforce these standards. There are code inspectors working for the city, but landlords are generally expected to hold themselves accountable for the condition of their properties.
Lead and Philadelphia Rental Properties
While applying for your rental license, you’ll need to provide a lead safety certification. This is a process wherein you, as a rental property owner, must certify that you are following all the laws and rules related to lead safety in your rental home. Here’s what those standards generally look like:
- For properties built before March 1978, the owner must submit lead certification and inspection reports to the Department of Public Health.
- If your rental property was built later than 1978, you must submit proof of the property’s age to avoid the lead requirements.
When your home is older than the 1978 date, you have to test the property for lead every four years. If there is lead found in the paint, then you have to scrape it off and repaint the walls. This type of remediation can be expensive and time consuming, but there is no way around the requirement.
Fair Housing Commission in Philadelphia
All rental property owners are required to follow the federal fair housing laws when renting out a home. But, there are also local fair housing standards to meet.
The Fair Housing Commission (FHC) makes sure that renters have safe homes to live in, and the commission is also tasked with ensuring landlords follow all local housing laws. The five-member commission and staff help people know their rights and responsibilities when it comes to renting a property.
The commission enforces the city’s fair housing ordinance and conducts hearings when properties are accused of being unsafe or in poor condition. This commission also verifies rental licenses and certificates.
A lot of attention is being paid to the rights of your tenants. You need to be mindful of this and ensure that you’re following every law and each regulation faithfully. It’s easy to make an unintentional mistake, but if you do that, you could find yourself dealing with steep fines and regulatory hearings that you’d rather not be a part of.
There’s a lot to wrap your head around, so if you need some help, consider the services of a Philadelphia property manager. We make this our life’s work – and we stay up to date on all the constantly changing laws and interpretations of those laws. We can keep you compliant. Contact us at TCS Management.
TCS Management is a full service property management company headquartered in Philadelphia, Pennsylvania, also serving Harrisburg, PA, Cherry Hill, NJ, Wilmington, Delaware and the surrounding areas. We focus on single-family and multifamily residential property management of homes, condos, townhomes, and apartment buildings.
