If you rent out a home or apartment in Philadelphia, two pieces of City paperwork sit underneath everything else: the Rental License and the Certificate of Rental Suitability. Without them, the Philadelphia Code can bar you from collecting rent or recovering possession. Here’s a plain-English walkthrough, including changes that take effect November 1, 2026.
What is a Philadelphia Rental License?
The Department of Licenses and Inspections (L&I) requires a Rental License to rent out dwelling, rooming, or sleeping units. One license can cover every unit in a single building, but each building on a property needs its own license (formerly called a Housing Inspection License) (phila.gov: Get a Rental License).
Key facts from the City’s licensing page, as of October 2026:
- Cost: $69 per unit, with a maximum of $27,830 per building. Owner-occupied units have no fee (L&I license fee summary).
- Term: The license must be renewed every year. If you renew more than 60 days after the due date, you’re charged 1.5% of the license fee for each month since it expired.
- Not transferable: A new owner has to close the old license and apply for a new one. The Code gives new owners ten business days after a transfer to get a new license (Phila. Code § 9-3901(3)(b)).
What do you need before you apply?
L&I won’t issue or renew a license unless you’re in good standing. Expect to need:
- Business registrations. Renting is a business. Most owners need a Commercial Activity License (CAL) and a business tax account, and must pay the Business Income & Receipts Tax (BIRT). If you live in the building and rent three or fewer units, an Activity License Number may be enough.
- Tax and code compliance. You must be current on all City taxes and fines and have no outstanding L&I violations. If you’re not sure, the City suggests getting a tax clearance first.
- Proof of legal occupancy, usually a Certificate of Occupancy.
- Lead certification. Properties built before March 1978 must be certified lead-safe or lead-free. Newer buildings file for an exemption. (We cover this in detail in our guide to Philadelphia lead certification.)
- A Philadelphia contact. Every licensed owner must designate a Managing Agent who lives in the city or regularly works from an office here (§ 9-3907). Since July 6, 2026, owners who don’t live or keep a place of business in Philadelphia must also register a Local Agent with a verifiable physical address. A P.O. box or virtual address doesn’t count (§§ 9-3902.1, 9-3902.2).
What is a Certificate of Rental Suitability?
The Certificate of Rental Suitability (CRS) is a free document you get from L&I through eCLIPSE. You must hand it to every new tenant at the start of the tenancy. It has to be issued no more than 60 days before the tenancy begins, and you need a new one each time you rent to a new tenant or renew a lease (phila.gov: Get a CRS).
To get it, you need a valid Rental License and no outstanding violation notices (unless an appeal is pending and you’ve notified L&I). You also certify that the fire protection and smoke detection systems work. Along with the CRS, the Code requires you to give the tenant (§ 9-3903):
- A copy of your suitability attestation
- The City’s Partners in Good Housing handbook (current edition)
What changes on November 1, 2026?
Bill No. 250329-AA, signed May 7, 2026, tightens these rules starting November 1, 2026 (certified bill text). Highlights:
- Share your license. Within 7 days of getting or renewing a Rental License, you must post it where every tenant can see it or deliver a copy to each tenant, along with a restatement of the Code’s noncompliance rule.
- CRS at eviction filing. When you file an eviction, you must give the tenant and the court a CRS issued no more than 30 days earlier.
- CRS on request. A tenant can ask for a current CRS once every 90 days. You have 10 days to provide one or lose the right to collect rent until you do.
- Stronger attestation. You must also attest that the property is free of unfit, unsafe, or imminently dangerous conditions.
- Tenant lawsuits. Tenants can recover the greater of actual damages or $1,000 per violation, plus rent abatement and attorney’s fees.
- Safe harbors. These cover delays caused by City re-inspections, certain pending tax appeals, and the first 15 days after a license expires, provided you renew within that window.
Why this matters for your rent
The Code is blunt. An owner who doesn’t have a valid Rental License or CRS, or whose license is suspended, “shall be denied the right to recover possession of the premises or to collect rent” for that period (§ 9-3901(4)). A lapsed renewal can quietly become lost income and a dismissed eviction case. That’s a big reason owners turn to professional Philadelphia property management.
FAQ
Do I need a Rental License for a single rowhome?
Yes. A license is required for any dwelling unit let for occupancy, including one-family homes.
Is there a fee for the Certificate of Rental Suitability?
No. The City lists it as free.
How early can I pull a CRS before move-in?
No more than 60 days before the tenancy starts.
Let us keep the paperwork current
JG Real Estate has managed Philadelphia rentals since 2011 and looks after roughly 2,000 units from our office at 1028 N 3rd Street in Northern Liberties. If you’d rather not track renewals, CRS dates, and the new November rules yourself, we’re happy to talk. Learn about our Philadelphia property management services or call us at 215.467.4100.
Sources: Get a Rental License (phila.gov) · Get a Certificate of Rental Suitability (phila.gov) · L&I License Fee Summary · Phila. Code Ch. 9-3900 · Bill No. 250329-AA · Partners in Good Housing (Sept. 2025)
