Becoming a landlord in Philadelphia can seem daunting with all the paperwork and licenses required. To help make the process smoother, I’ve broken it down into easy-to-follow steps. Let’s dive in!
1. Register for a BIRT Account
Before you start renting, you need to register for a Business Income and Receipts Tax (BIRT) account with the Philadelphia Department of Revenue. This applies to anyone earning rental income in the city.
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What to do: Register online (it’s free!).
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Why it’s important: It’s required for tax purposes.
2. Create an eClispe Account
You’ll need an eClispe account to apply for and manage your licenses and permits through the Philadelphia Department of Licenses and Inspections (L&I).
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What to do: Set up your account online.
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Why it’s important: It’s the key to applying for various licenses.
3. Get a Commercial Activity License
If you’re renting out property in Philadelphia (even if you live outside the city), you need a Commercial Activity License unless you’re renting out 2-4 units and living in one.
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What to do: Apply through your eClispe account (free).
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Why it’s important: It’s required for all rental businesses.
4. Comply with Lead Paint Laws
If your property was built before 1978 and has tenants under age 6, you must comply with the Lead Paint Disclosure and Certification Law.
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What to do: Get the necessary certification.
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Why it’s important: It’s legally required to protect tenants.
5. Apply for a Housing Rental License
To rent any property in Philadelphia, you need a Housing Rental License
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What to do: Apply online via eClispe (fees apply per unit).
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Why it’s important: This is a must-have for all landlords.
6. Obtain a Certificate of Rental Suitability
Before you can rent out your property, you need a Certificate of Rental Suitability. This ensures your property is safe and meets Philadelphia’s property code.
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What to do: Request the certificate online (free, but within 60 days of lease start date).
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Why it’s important: It confirms the property is habitable.
7. Register for the PGW Landlord Cooperation Program
If you want to stay updated on gas service issues at your rental property, sign up for the PGW Landlord Cooperation Program.
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What to do: Register online (it’s free!).
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Why it’s important: It keeps you informed about gas-related issues.
8. Provide Required Documents
Before signing the lease, provide tenants with important documents, including lead paint disclosures and housing guidelines.
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What to do: Give tenants the Partners for Good Housing publication and other required forms.
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Why it’s important: It’s required by law and ensures clarity with tenants.
You’re Officially a Landlord!
By completing these steps, you’ll be ready to rent your property legally and confidently. If you have any questions or need assistance, feel free to reach out. I’m here to help you every step of the way as you grow your real estate investments in Philadelphia.