City Ordinances Place Additional Burdens On Phila. Landlords

Since I have been practicing law, ­landlords doing business in Philadelphia have been required to obtain what is called a housing inspection license for their residential dwelling units on an annual basis.

Philadelphia’s Housing Inspection License Requirement

Chapter 102.6 of the Philadelphia Property Maintenance Code provides that “no person shall collect rent with respect to any property that is required to be licensed … unless a valid license has been issued for said property.”

For years, the Philadelphia Municipal Court, which maintains concurrent ­jurisdiction on landlord-tenant disputes with the Philadelphia Court of Common Pleas, has refused to allow a landlord to even file a complaint seeking to obtain a judgment for money or possession if the landlord did not have a valid Housing Inspection License at the time of filing.

In response, landlords who did not ­possess a valid Housing Inspection License during a portion of the lease tenancy would merely obtain one prior to the filing of the complaint in the Philadelphia Municipal Court.

New Strict Interpretation by Philadelphia Municipal Court

Until recently, if the tenant was not present at the hearing in the Philadelphia Municipal Court, a default judgment would be entered by the commissioner and the issue of the lack of a valid license during the lease tenancy would not affect the relief sought by the landlord.

Last week, however, for the first time, a commissioner refused to issue a default judgment for rent allegedly due during the lease tenancy without proof that the landlord had a valid license for all time periods in which rent was sought. In that case, the landlord lacked proof the prior owner (a bank) had the license. The commissioner granted a default judgment for only the time periods the current landlord held a valid license.

New Ordinance Requiring Smoking Policy Disclosure

In late April, Philadelphia enacted an ordinance requiring landlords of multifamily buildings to disclose the building’s smoking policy in the lease. The disclosure must state whether smoking is prohibited, permitted in all units, or permitted in some units with identification of those units.

This requirement applies at the beginning or renewal of a lease. Failure to comply could result in the landlord being found in breach of the lease agreement. The ordinance takes effect in the last week of June.

Certificate of Rental Suitability and Tenant Protections

Philadelphia landlords must also obtain a Certificate of Rental Suitability from the Department of Licenses and Inspections, confirming that licenses are in place, there are no outstanding violations, and that the property is habitable.

Landlords can obtain the certificate online and must provide it to tenants along with the “City of Philadelphia Partners for Good Housing Handbook” within 60 days prior to lease inception. Failure to do so can bar the landlord from collecting rent or obtaining possession.

Unlike the Housing Inspection License, a landlord can file a complaint without having the certificate, but if a tenant raises the defense that they never received it and the handbook, the court cannot base judgment on that period of noncompliance.

Impact on Landlords

These regulatory requirements, while intended to protect tenants, create additional burdens for landlords trying to operate responsibly. Good landlords must now navigate even stricter compliance obligations to maintain their rights in landlord-tenant disputes.

Reprinted with permission from the June 14, 2016 edition of The Legal Intelligencer © 2016 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited. For information, contact 877-257-3382, reprints@alm.com or visit www.almreprints.com.