The ABCs of Rental Licenses in Philadelphia

All residential landlords in Philadelphia must ensure that they comply with local rules governing the landlord-tenant relationship. Most importantly, and with few exceptions, all residential landlords must have a rental license. The rental license is a foundational and non-negotiable requirement. Failure to obtain and maintain a current rental license can carry heavy penalties for landlords, including daily fines and the total inability to collect rent or to evict a tenant, even if he or she has ceased paying rent or committed other violations of the lease.

Requirement for Rental Licenses

Philadelphia requires a rental license for all residential units. This requirement applies whether the landlord is renting out a single room within a home or is operating a multi-unit rental building. In the case of a multi-unit building, one license will cover all units within that building. However, if a property contains more than one building, each building on the property requires its own rental license.

License Validity and Renewal

A rental license in Philadelphia is valid for 1 year from the date of issuance and must be renewed annually for as long as the property is rented to residential tenants. Landlords can apply for a rental license online using the City of Philadelphia’s eCLIPSE system. Alternatively, the rental license application can also be submitted in person at the Permit and License Center. The rental license fee varies based on the number of units covered by the license. Any rental license renewal submitted more than 60 days after the due date will be subject to a 1.5% penalty.

Inactive Licenses and Zoning Variances

For properties being used for residential purposes by way of a zoning variance, it is vital to maintain an active rental license. If a rental license is inactive for more than three years, the use of the property may revert back to its base zoning classification. For example, if a variance was granted to permit use an RSA-5 property as a duplex, it may continue to be used as a duplex, even under different ownership, as long as the rental license does not become inactive for more than three years. Once three years of inactivity passes, the landlord will either have to apply for a multi-family use variance, or be limited to using the property as a single-family home.

Certificate of Rental Suitability

The requirement that a landlord obtain a rental license exists to ensure that tenants have access to suitable housing in good physical condition. Because of this requirement, a landlord will not be able to obtain a new rental license or renew an existing rental license for a property with open violations against it from the City of Philadelphia’s Department of Licenses & Inspections (“L&I”).

Additionally, a current rental license is necessary to obtain a certificate of rental suitability, which, unlike the rental license, residential landlords must provide to every tenant at the start and renewal of any lease term, along with a copy of the Partners for Good Housing Handbook.

Contact Natalie Klyashtorny

If you are a landlord and have questions about obtaining for renewing a rental license, contact Natalie Klyashtorny by email at natalie.klyashtorny@nochumson.com or by phone at (215) 600-2852 for a consultation.