Every landlord or legal entity that owns and rents a residential housing unit in Philadelphia must obtain a rental license (formerly known as a housing inspection license). The rental license itself is just one piece of the compliance puzzle. There are prerequisites to being able to get the rental license and then additional things you must do or fulfill after you get the actual license.
The following steps provide a simple step-by-step guide to walk you through the process of obtaining your rental license(s):
Step 1: Obtain a Commercial Activity License and a Philadelphia Business Tax Account Number
The application for both the Commercial Activity License (“CAL”) and Business Tax Account number (“BIRT”) is on the same application and you can get a copy by going Here.
You can apply online via a website called eClipse using an email account. Or you can go in person to:
Department of Licenses and Inspections (“L & I”)
License Issuance Unit - PSC
1401 John F. Kennedy Boulevard
Concourse Level
Philadelphia, PA 19102
If you already have a BIRT but do not know your CAL number, you then fill out the housing rental license application and leave the CAL number blank. L & I can fill-in the blank for you when you go to L & I to acquire the license(s). If you apply online, you MUST have all the information and can not rely on L & I to fill in blanks.
If you have a CAL number but cannot figure out what your BIRT is, you must get the number from the revenue department at the address referenced above.
Note: Many people put each property they rent out into a different LLC. You must have a Commercial Activity License and a Philadelphia Business Tax Account # for each LLC that will be renting-out housing units. You cannot utilize the same CAL and BIRT numbers for different LLC’s (but you can if the same LLC is renting-out multiple properties).
Step 2: Confirm that You have the Zoning Approval & Certificate of Occupancy for the Property
You will not be able to acquire your housing rental license(s) if you do not have the zoning/use permit for the property in question. If you do not have your zoning approval, you must apply for a Zoning/ use Permit.
If you are obtaining a rental license for a property with 2+ units, you also need to have a certificate of occupancy (CO), which is tied to the building permit/building code approving that the structure is fit to occupy.
If you have your zoning permit(s) and CO, voilà! Move to the next step.
Step 3: Ensure There Are No Outstanding Violations on the Property
The City of Philadelphia will not issue your rental license(s) if there are any outstanding violations assigned to the property. You can check to see if there are any outstanding violations at: https://li.phila.gov. If there are any open violations, they must be resolved to get your rental licenses.
Step 4: Make Sure Your Taxes Are Paid-Up
Not sure if your tax status is up to date? You can check if you are tax compliant here: https://li.phila.gov.Select “permits/ licenses” as compliance type.
Make sure that you are checking the tax compliance for the LLC entity (SSN if sole proprietor) that is applying for the housing rental license.
If you are not tax compliant, reach out to the revenue department to find out why and then fix it.
Note: Steps 2-4 can be addressed simultaneously.
Step 5: Lead Paint Due Diligence
If the property in question was built prior to 1978 and will be occupied by a group that includes a child under the age of 7 years old, you must take the necessary steps to confirm that the property is lead free or lead safe. You are held responsible for this by law and will be required to confirm this on the rental license application, as well as required to provide the tenants with certain statements and materials.
The 4 questions below will be on the rental Licenses application and must be answered.
- Was the property constructed prior to 1978?
- Is any unit of this property now occupied by a child aged 6 or under? Answer YES if you are aware that any unit of this property will be occupied by a child aged 6 or under during the next 12 months.
- If you have answered YES to the previous two questions, you must comply with the disclosure requirements set forth in the Philadelphia Code Section 6-803. Do you certify that you have complied with these requirements, including submitting a certification of lead-safe or lead-free condition to the lessee(s) and the Philadelphia Department of Public Health?
- If you have answered YES to Question 1. and NO to Question 2, do you certify you will comply with the requirements as set forth in the Philadelphia Code Section 6-803 if your property becomes occupied by a child aged 6 or under during the next 12 months?
Step 6: Fill Out a Housing Rental License Application
You can fill out the Housing Rental License Application by clicking here: link to the application. You may apply online here, but it often does not work.
You only need to fill out one application for each property that you are renting. For example: If you are renting 5 units in one building, you only need to fill out one application. You will simply mark ‘5 units’ for total rental units.
Step 7: Go to Licenses and Inspections and Apply for your License(s)
Head down to the Municipal Services building at the above address. Make your way to the basement.
Pull a “D” ticket for “New Licenses” and be prepared to sit a for a while. We recommend you get there at or prior to 8:30 when they open.
Each rental unit is $55 + tax. You may pay with a debit card or an e-check. Once you have your rental licenses, store them both digitally and in hard copy format in a safe place for easy access.
Step 8: Final Certificates and Approvals
Obtain your Certificate of Rental Suitability by clicking here. Once you have this please print it and save it and give a copy to the tenants to sign a version so you can later prove you gave it to them.
Download and save the Partners for Good Housing handbook by clicking here. Once you have this please print and save it to give to the tenants to sign a version so you can later prove you gave it to them.
We recommend you read through it and make sure you’re not taking any actions that are against what you have agreed to.
Create a statement written and signed by you the landlord, certifying that the unit is in suitable condition to rent. Your signed statement must include the following information (if it is all true, if not, you need to make sure it is true):
- The unit has working fire extinguishers and smoke detectors;
- The operating systems and the property do not have health and safety defects; and;
- The landlord will continue to maintain the operating systems and condition of the property and throughout the tenancy.
Step 9: Notify Your Tenants
You are required to supply your tenants with a number of documents and in some cases, you must get them to sign that they have received the documents.
We recommend you send an inclusive email to them including:
- Certificate of Rental Suitability (owner/landlord must sign, and you must be able to prove you gave it the tenant – we recommend you make it part of your lease)
- Lead paint disclosures/certificates/etc. (Owner/Landlord must sign)
- Partners for Good Housing Handbook (you must be able to prove you gave it to the tenant)
- Copies of your rental license(s)
- Written statement about property
Step 10: Final Steps and Reminders
You must renew your housing rental license annually. Set up an automatic reminder in your Google calendar, reminders, or some other automated way to remind you each year. The good news is once all this is set up much of it can be renewed online.
If you are a real estate investor or property owner and want to learn more about how we can help you buy investment properties and our property management program please go to our website at https://www.delvalproperty.com/philadelphia-property-management.
Mike Lautensack is the owner of Del Val Realty & Property Management ("Del Val"). Del Val is a FULL SERVICE Philadelphia Property Management company with over 15 years' experience and manage over 3,00 single family homes, HOA units and multifamily properties in and around Philadelphia, PA. We advise property owners how to build wealth and financial security through hassle-free ownership of rental real estate with our NO "Hassle" FULL Service Management Program. This proven management system allows owners to enjoy the financial benefits of cash flow, tax savings, and wealth creation. All this while it GUARANTEES you will never have to deal with maintenance or tenant issues.
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