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:
- Smoke alarms shall be installed throughout the home in the following locations:
- In each bedroom, hall area in the immediate vicinity of the basements, on each floor of the home, including basements.
- Carbon monoxide alarms shall be installed in the home in the following manner:
- 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.
- 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.
- If the alarm is a combination smoke and carbon monoxide alarm, it shall be located in accordance with the installation requirements for smoke alarms.
- Signs for lodging are prohibited on your home.
- 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.
- 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
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