Called “Limited Lodging” in Philadelphia, vacation rentals are subject to a number of short-term rental laws including hotel tax of 8.5% and a license fee. The newest restrictions passed on June 10th, which if approved by the mayor will introduce a new “Limited Lodging Operator” license in addition to a general business license.  

Active Short-Term Rental Laws in Philadelphia 

While the LLO license is new for hosts in Philadelphia, they must also operate their short-term rental under current active short-term rental laws in the city including the following:  

  1. Smoke alarms shall be installed throughout the home in the following locations:  
  2. In each bedroom, hall area in the immediate vicinity of the basements, on each floor of the home, including basements. 
  3. Carbon monoxide alarms shall be installed in the home in the following manner: 
  4. Carbon monoxide alarms shall be installed within 15’ of the entrance to every bedroom or within 15’ of a bed in sleeping areas where there is no enclosed bedroom. 
  5. Alarms shall be centrally located on a wall or the ceiling, but not directly in front of a door to a bathroom or within 5’ of a cooking appliance. 
  6. If the alarm is a combination smoke and carbon monoxide alarm, it shall be located in accordance with the installation requirements for smoke alarms. 
  7. Signs for lodging are prohibited on your home. 
  8. The home may not be occupied by more than three persons who are unrelated by blood, marriage, adoption, or foster-child status, or a not Life Partners. 
  9. Short-term rentals may not result in physical changes to your home so that it no longer looks like a home, such as constructing a separate building entrance for the sole use of the renters. 

Short-Term Rental Regulations & Room Sharing 

It is interesting to see how short-term rentals are address across the nation. Many only want hosts to rent if they are also on site, while others are concerned with the increased liability of room-sharing. As described in Philadelphia’s short-term rental laws, hosts cannot rent their home to “more than three persons who are unrelated by blood.”  

From an insurance perspective, this scenario would certainly be a liability concern. When there are multiple groups/parties renting a single property or even the owner sharing the home with renting guest causes concerns. Invasion of privacy is just one example – and it is no joke.  

Quote Your Short-Term Rental Today 

Interested in a policy to protect you and your business from liability and damage claims? Proper Insurance leads the Nation in short-term rental insurance, with over 50,000 policies written in all 50 states. Backed by Lloyd’s of London and exclusive endorsements from short-term rental leaders such as HomeAway and Vrbo, Proper Insurance is built on world-class insurance coverage that meets and exceeds both city and lender requirements. 

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