Owning rental property in Philadelphia comes with a specific set of licensing and certification requirements that must be maintained every year. Miss one, and you risk fines, failed inspections, and in some cases the inability to legally collect rent. Stay current, and you operate with confidence knowing your properties are fully compliant.

This checklist walks through every major requirement Philadelphia landlords need to track: the Commercial Activity License, the annual Rental License, the Rent Suitability Certificate, and the safety certifications that protect both your tenants and your investment.

The Commercial Activity License (CAL)

The Commercial Activity License is the foundational business license required by the City of Philadelphia for anyone engaged in commercial activity within city limits. For landlords, renting out residential property qualifies as a commercial activity, which means a CAL is required before you can legally operate.

Who Needs It

Any individual or entity that owns and rents residential property in Philadelphia must hold a valid CAL. This applies to individual landlords, LLCs, partnerships, and corporations. There is no minimum number of units that triggers the requirement. Even a single rental unit requires a CAL.

How to Obtain It

The CAL is issued through the Philadelphia Department of Revenue. Applications are submitted through the Philadelphia Tax Center at philatax.phila.gov. The process requires basic business information, including your legal name or entity name, contact information, and the nature of your business activity.

Cost and Renewal

The CAL itself does not carry an annual fee for most small landlords, but it must be kept current. If your business information changes, such as a change in ownership structure or contact details, you are required to update your CAL accordingly.

Why It Matters

The CAL is a prerequisite for obtaining a Rental License. Without it, your rental license application will not be processed. It is also required for compliance with Philadelphia’s Business Income and Receipts Tax (BIRT), which applies to rental income.

The Annual Rental License

The Rental License is the most directly relevant license for Philadelphia landlords. It is required for every residential rental unit in the city and must be renewed annually.

Who Needs It

Every owner of a residential rental property in Philadelphia must hold a current Rental License for each unit. This includes single-family homes, multi-unit buildings, condominiums rented to tenants, and accessory dwelling units. Owner-occupied properties where the owner rents out one or more additional units are not exempt.

How to Obtain It

Rental Licenses are issued through the Department of Licenses and Inspections (L&I). Applications are submitted online through the eCLIPSE system at eclipse.phila.gov. You will need your CAL number, property address, and the number of units being licensed.

Cost

The current fee is $55 per unit per year for most residential rental properties. Properties with four or more units may be subject to additional inspection requirements and fees. Always verify the current fee schedule on the L&I website, as fees are subject to change.

Renewal Timeline

Rental Licenses expire annually. Renewal notices are typically sent to the address on file, but it is the landlord’s responsibility to renew on time regardless of whether a notice is received. Late renewals may result in penalties and a lapse in your legal authority to collect rent.

Displaying the License

Philadelphia law requires that the Rental License number be included in all rental listings and advertisements for the property. This includes online listings on platforms like Zillow, Craigslist, and similar sites. Failure to include the license number in listings is a violation subject to fines.

Why It Matters

Operating a rental unit without a current Rental License is illegal in Philadelphia. Unlicensed landlords can be fined, ordered to stop collecting rent, and required to refund rent collected during the unlicensed period. Courts have ruled in favor of tenants who withheld rent from unlicensed landlords.

The Rent Suitability Certificate

The Rent Suitability Certificate (RSC) is a newer requirement that has become increasingly important for Philadelphia landlords, particularly those whose tenants receive housing assistance.

What It Is

The Rent Suitability Certificate confirms that a rental unit meets the City of Philadelphia’s habitability standards. It is required as part of the rental licensing process and must be on file for each unit. The certificate is tied to the property’s compliance with the Philadelphia Property Maintenance Code.

Who Needs It

All landlords applying for or renewing a Rental License are required to certify that their units meet habitability standards. For landlords participating in the Housing Choice Voucher (Section 8) program, the RSC is a specific requirement for lease-up and annual recertification.

How to Obtain It

The RSC is obtained through the Department of Licenses and Inspections. In many cases, it is issued as part of the Rental License process when the landlord certifies that the unit meets code requirements. For properties that have had recent violations or complaints, an inspection may be required before the certificate is issued.

Why It Matters

The RSC is not just a paperwork requirement. It is a legal certification that your unit is habitable. If a tenant later claims uninhabitable conditions and you cannot produce a current RSC, you are in a significantly weaker legal position. Keeping this certificate current is both a compliance requirement and a liability protection measure.

Lead Paint Certification

Lead paint is one of the most serious safety issues in Philadelphia’s older housing stock. The city has some of the highest rates of childhood lead poisoning in the country, and the regulatory framework reflects that urgency.

The Federal Disclosure Requirement

Under federal law (42 U.S.C. Section 4852d), landlords of properties built before 1978 must disclose known lead paint hazards to prospective tenants before a lease is signed. This requires providing tenants with the EPA’s “Protect Your Family from Lead in Your Home” pamphlet and completing a Lead Paint Disclosure form that both parties sign.

Philadelphia’s Additional Requirements

Philadelphia goes further than federal law. Under the Philadelphia Lead Paint Disclosure and Certification Law, landlords renting to families with children under six years of age in properties built before 1978 must provide a current Lead Paint Certification issued by a certified inspector or risk assessor.

Key requirements include:

•A lead paint inspection or risk assessment conducted by a Philadelphia-certified inspector

•A written certification confirming the unit is lead-safe or lead-free

•Providing the certification to the tenant before occupancy begins

•Renewing the certification as required (typically every two years for lead-safe certifications)

Finding a Certified Inspector

Philadelphia maintains a list of certified lead inspectors and risk assessors through the Philadelphia Department of Public Health. Only inspectors with current city certification are authorized to issue compliant certifications.

Penalties for Non-Compliance

Failure to comply with Philadelphia’s lead paint requirements can result in fines of up to $2,000 per violation per day. More significantly, if a child is harmed by lead exposure in a non-compliant unit, the landlord faces substantial civil liability. Lead paint compliance is not optional.

Bed Bug Certification

Philadelphia’s Bed Bug Disclosure Law requires landlords to disclose bed bug history to prospective tenants before a lease is signed.

What the Law Requires

Under Philadelphia Code Section 9-3901, landlords must:

•Disclose in writing whether the unit or any adjacent unit has had a bed bug infestation within the past 120 days

•Provide the disclosure before the tenant signs the lease

•Retain a signed copy of the disclosure for their records

The Disclosure Form

The disclosure must be in writing and signed by both the landlord and the tenant. The City of Philadelphia provides a standard disclosure form, though landlords may use their own form as long as it meets the legal requirements.

Treatment and Re-Rental

If a unit has had a bed bug infestation, it cannot be re-rented until a licensed pest control professional certifies that the infestation has been eliminated. Documentation of the treatment must be retained and may be required during inspections or legal proceedings.

Why It Matters

Bed bug disclosure violations can result in fines and create significant liability if a tenant later discovers an infestation that was not disclosed. Maintaining accurate records of any infestations and treatments protects you legally and demonstrates responsible property management.

Your Annual Compliance Calendar

Staying compliant is easier when you treat it as a scheduled process rather than a reactive one. Here is a simple framework for managing your Philadelphia licensing requirements throughout the year:

Timeframe	Action
January	Review all Rental License expiration dates; begin renewal process for licenses expiring in Q1
February to March	Complete lead paint inspections for units with children under six; renew certifications as needed
April to June	Audit all rental listings to confirm license numbers are displayed
July	Mid-year review of any L&I violations or open permits
August to September	Begin renewal process for licenses expiring in Q4
October	Confirm Rent Suitability Certificates are current for all units
November	Review bed bug disclosure records; confirm treatment documentation is on file
December	Confirm CAL information is current; prepare for January renewal cycle

Common Compliance Mistakes Philadelphia Landlords Make

Letting Licenses Lapse During Vacancies

Some landlords allow their Rental License to expire when a unit is vacant, assuming the license is only needed when a tenant is in place. This is incorrect. The license must be current before you can legally advertise or rent the unit. A lapsed license during a vacancy can delay your ability to place a new tenant.

Failing to Update the CAL After Ownership Changes

If you transfer a property to an LLC, add a partner, or change your business structure, your CAL must be updated to reflect the change. Operating under an outdated CAL creates compliance gaps that can surface during inspections or legal proceedings.

Missing the Lead Paint Requirement for New Tenants

Lead paint certifications are required before occupancy, not after. Landlords who complete the certification after a tenant moves in are already in violation. Build the certification process into your lease-up timeline so it is completed before keys are handed over.

Not Including the Rental License Number in Listings

This is one of the most commonly cited violations in Philadelphia. Every listing, on every platform, must include the Rental License number. Set a standard template for your listings that includes the license number by default.

Relying on Tenants to Report Bed Bug Issues

The bed bug disclosure requirement applies to every new tenancy, regardless of whether you are aware of any current infestation. The disclosure must be completed proactively, not in response to a complaint.

Staying Ahead of Regulatory Changes

Philadelphia’s rental regulations have evolved significantly over the past several years, and the pace of change shows no signs of slowing. The Renters’ Access Act, updates to the lead paint certification requirements, and ongoing revisions to the L&I inspection process all require landlords to stay informed.

The most reliable way to stay current is to maintain a relationship with a property management firm or real estate attorney who tracks regulatory changes as part of their core practice. Waiting for a violation notice to learn about a new requirement is a costly approach.

Otter Property Management helps Philadelphia landlords maintain full compliance with city licensing requirements, safety certifications, and regulatory updates. Contact our team to schedule a compliance review for your portfolio.