What do I need to Apply for a Philadelphia Rental License?
Philadelphia requires that a property owner needs a rental license to rent out dwelling, rooming, or sleeping units to tenants. A property owner is not legally allowed to collect rental payments without a valid rental license. In order to apply for a Philadelphia rental license, the city has a hand full of prerequisites that must be completed first. Keep reading to learn more:
This article is published by Philly Rental License. We are a 3rd party expediter who can register on your behalf for the Philadelphia Rental License. For assistance with registering for your rental license, please contact us at info@Phillyrentallicense.com or visit us at phillyrentallicense.com.
Philadelphia Tax Account Number
The city of Philadelphia department of Revenue considers a rental property to be a form of a business, well because it is! Therefore, the city also wants their piece of the pie. It is prerequisite for the rental license to register for the Business Income and Receipts Tax (aka BIRT). The purpose of this tax is file a tax return based on the income earned on the property. This is required regardless of where the property owner is located.
In addition, the property owner’s tax account must be free and clear of any outstanding taxes or missing filings.
Commercial Activity License
A Commercial Activity License is required to do business within Philadelphia. Even if the business itself is located outside of the city, but has work inside of Philadelphia, then it is required. A valid Business Income and Receipts Tax Account (BIRT) as mentioned above is required in order to apply for a Commercial Activity License. A Commercial Activity License is required in order to apply for a rental license. The Philadelphia Department of Licenses & Inspections (L&I) issues the Commercial Activity License.
Lead Based Paint Test
The city of Philadelphia requires that all residential rental properties built in and prior to March 1978 must be tested for lead based paint. Properties built after the requirement date are exempt from lead based paint testing and must still file the expemption. The lead based paint test results are valid for four years and must be retested upon expiration. The city has issued allowable limits of lead that a property can be tested positive for. Once a property is tested for lead and passes, the lead test results and safety certificate must be uploaded to the Philadelphia lead department database.
Proof of Ownership
Applicants must provide proof of ownership along with their rental license application. This must be in the form of a recorded deed or fully signed settlement statement. The city will not accept a deed that has not been recorded or a settlement sheet that is not signed. An applicant must be the current owner of the property and cannot apply for the rental license prior to having ownership.
Proof of Use & Occupancy
Property owners applying for a rental license for properties that are multifamily must submit valid proof of the building’s use and occupancy. The department of Licenses and Inspections requires a valid Certificate of Occupancy (CO) for proof of zoning. Depending on the year property’s zoning was approved, there are alternative forms of proof they may accept.
This article is published by Philly Rental License. We are a 3rd party expediter who can register on your behalf for the Philadelphia Rental License. For assistance with registering for your rental license, please contact us at info@Phillyrentallicense.com or visit us at phillyrentallicense.com.
