Airbnb & VRBO Performance in Philadelphia Pennsylvania.

Short-Term Rental Regulations in Philadelphia, Pennsylvania for 2024

Licensing Requirements

• Limited Lodging Operator License: Required for primary residences rented out for short-term stays. This license incurs a fee of $150.
• Rental License: Necessary for properties rented out for more than 90 days a year or for non-primary residences. This license has an annual fee of $55 per dwelling or rooming unit, with a maximum annual fee of $22,000.
• Commercial Activity License: Needed for all short-term rental operations.

Zoning and Permits

• Zoning Permit: Required to ensure the property meets zoning permit requirements for short-term rental use. Properties must be zoned appropriately, and variances may be needed if the property is not zoned for short-term rental use.
• Zoning Classification: Operators must identify their property's zoning classification to understand allowable activities.

Tax Obligations

• City of Philadelphia Hotel Tax: 8.5% of the rental revenue received, collected and remitted by hosting platforms like Airbnb.
• Net Profits Tax (NPT): Applied to residents at a rate of 3.75% and to non-residents at a rate of 3.44% for rental income.
• Business Income and Receipts Tax (BIRT): Based on gross receipts from Philadelphia activities.

Operational Requirements

• Managing Agent: A responsible agent, a natural person over 18 residing in the city or regularly attending a city-based business office, must be designated to receive notices, orders, or summonses and provide tenant contact information.
• Occupancy Limits: Limited lodging owners must not permit occupancy by more than three individuals (including the owner and lodgers) who are unrelated by blood, marriage, adoption, or foster-child status, unless they are Life Partners.
• Safety and Health Standards: Installation of smoke alarms and carbon monoxide alarms as per city regulations.

Compliance and Enforcement

• Registration and Renewal: Licenses must be renewed annually, with a late fee of 1.5% of the license fee for each month the license is overdue if renewed more than 60 days after expiration.
• Enforcement Mechanisms: The city works with booking platforms to identify and delist unlicensed properties. Violators can face significant fines from the Department of Licenses and Inspections.
• Appeal Process: Operators who receive a notice of violation have the right to an appeal through a structured process.

Additional Requirements

• Lead Safety Certification: Required for properties built before March 1978, along with inspection reports.
• Building Code Compliance: Newer properties must demonstrate compliance with the city's building codes and regulations.
• Ownership Disclosure: If the property is not owned by a natural person or a publicly-traded company, the application must include the name and mailing address of each natural person with an equity interest exceeding 49% or the two individuals with the largest equity interest.

Top Neighborhoods for Airbnb Revenue in Philadelphia, Pennsylvania

1. Center City

• Why it's appealing: Center City is the heart of Philadelphia, offering easy access to major attractions such as Independence Hall, the Philadelphia Art Museum, and the Barnes Foundation. Guests love the proximity to restaurants, bars, shopping, and historic sites. Properties like the "Brand New Modern Home /w Rooftop Downtown Skyview" and "Rittenhouse Square near Kimmel Center Studio Suite" are highly rated for their modern amenities and stunning city views.
• Key features: Central location, luxury amenities, rooftop decks, and secure buildings.

2. Fishtown

• Why it's appealing: Fishtown is a trendy neighborhood known for its vibrant arts scene, coffee shops, restaurants, and bars. Guests appreciate the unique, renovated row homes and modern lofts, such as the "Renovated Row Home in Fishtown" which offers a local experience with easy access to city attractions.
• Key features: Trendy vibe, local amenities, walkability, and unique housing options.

3. Rittenhouse Square

• Why it's appealing: Rittenhouse Square is one of Philadelphia's most desirable neighborhoods, offering a mix of historic charm and modern luxury. Guests enjoy the beautiful park, high-end shopping, and dining options. Properties like the "Historic Rittenhouse Townhome A+ Location w/2Bed" and "Cozy Studio Apartment with Kitchen & Laundry" are favorites for their location and amenities.
• Key features: Historic townhomes, modern studios, park access, and upscale amenities.

4. Old City

• Why it's appealing: Old City is steeped in history, with landmarks like Independence Mall, the Liberty Bell, and the Museum of the American Revolution within walking distance. Guests appreciate the newly renovated buildings, such as "Unit 9, Queen bed, Fast Wi-Fi, Elevator @ Old City," which offer a blend of historic charm and modern convenience.
• Key features: Historic landmarks, newly renovated buildings, elevator access, and central location.

5. Manayunk

• Why it's appealing: Manayunk is a charming neighborhood with a small-town feel, offering easy access to Main Street with its bars, boutiques, and restaurants. Properties like the "Private Getaway Home in Beautiful Manayunk Phila" and "Saint Davids Cottage" are popular for their private homes, modern amenities, and proximity to local attractions.
• Key features: Private homes, modern amenities, walkability to Main Street, and historic charm.

6. Chestnut Hill

• Why it's appealing: Chestnut Hill is an ideal weekend destination or base to explore Philadelphia, with its convenient access to shopping boutiques, SEPTA transportation, and outdoor recreation in Fairmount Park. Guests enjoy the newly renovated apartments, such as "Best of Philly in The Heart of Chestnut Hill," which offer a comfortable and convenient stay.
• Key features: Convenient transportation, shopping boutiques, outdoor recreation, and newly renovated apartments.

These neighborhoods are highly appealing due to their unique blend of historical significance, modern amenities, and convenient access to Philadelphia's major attractions.

Creating an Inviting Airbnb in Philadelphia: Design and Furnishing Tips

The Entryway

• First Impressions Matter: Ensure the entryway is welcoming and thoughtfully designed to make guests feel special.
• Local Touches: Incorporate elements that reflect Philadelphia's heritage and neighborhood character.
• Essential Amenities: Provide a key holder, a welcome note, and any necessary instructions for the space.

The Living Room

• Lighting Control: Use lamps and dimmer switches to create a cozy and adjustable lighting atmosphere.
• Comfortable Seating: Include soft, clean blankets and pillows with various fill options.
• Functional Layout: Design the room to evoke conversation and ensure each guest has a place to put their drinks and relax.
• Local Art and Decor: Incorporate local art or unique decor to give the space a Philadelphia flair.

The Bedroom

• Luxurious Bedding: Offer high-quality bedding options and provide extra layers in the closet for guest convenience.
• Pillow Variety: Provide two sleeping pillows per guest with different fill options (e.g., foam-filled, down alternative).
• Temperature and Lighting Control: Install ceiling fans and offer bedside tables with lamps, including options with USB ports or wireless charging features.
• Blackout Shades: Ensure proper window coverings to cater to different sleep preferences.

The Bathroom

• Luxury Touches: Add fluffy bathrobes for a romantic getaway or special touch.
• Quality Amenities: Use nice-smelling hand soap and provide extra, fluffy towels.
• Practical Storage: Ensure there is a place to put shower items while in use, avoiding clutter on the floor.

General Tips

• Reflect the City's Heritage: Incorporate elements that reflect Philadelphia's history and cultural identity.
• Mix Styles: Don’t be afraid to mix different styles to create a unique and authentic Philadelphia look.
• Quality Furnishings: Invest in modern, stylish furnishings that enhance aesthetic appeal.
• Guest Experience: Design the space with the guest's experience in mind, ensuring it is comfortable and functional.

Exploring Philadelphia: Top Attractions and Insider Tips for Your Guests

Must-Visit Attractions

1. Independence National Historical Park

• This 55-acre National Park is home to landmarks like Independence Hall, the Liberty Bell, and the Ben Franklin Museum. It's a must-visit for anyone interested in American history.

2. Philadelphia Museum of Art

• Famous for the "Rocky Steps," this museum offers stunning views of the city and an impressive art collection. Encourage guests to run up the steps and take a photo at the top.

3. The Franklin Institute Science Museum

• A great place for families and science enthusiasts, featuring interactive exhibits and a giant heart you can walk through.

4. Reading Terminal Market

• This historic market offers a variety of local foods, fresh produce, and handmade crafts. It's an excellent spot to try an authentic Philly cheesesteak.

5. Eastern State Penitentiary

• Explore the crumbling cells and history of this former prison, which once held famous inmates like Al Capone.

6. Liberty Bell Center

• Home to the iconic Liberty Bell, this center provides a close-up look at one of America's most historic symbols.

7. Historic Old City

• Known for its charming streets, historic buildings, and vibrant nightlife. Guests can enjoy shopping, dining, and cultural attractions here.

8. Rittenhouse Square

• A beautiful park in the heart of the city, perfect for a relaxing stroll or picnic.

Insider Tips

For Independence National Historical Park

• Next Day Tickets: Inform guests that limited additional 'next day' tickets for Independence Hall tours are available at 5pm.

For the Philadelphia Museum of Art

• Capture the Moment: Suggest that guests bring a friend or family member to take their picture at the top of the "Rocky Steps".

For General Exploration

• Local Cuisine: Recommend trying an authentic Philly cheesesteak at places like Pat's King of Steaks or Geno's Steaks.
• Nighttime Activities: If guests are visiting during the holiday season, suggest the Holiday Light Show at Shady Brook Farm and advise them to bring a device good at capturing night photos.

For Shopping and Dining

• Reading Terminal Market: Encourage guests to explore this market for local foods, fresh produce, and unique shopping experiences.

By providing these tips and recommendations, you can enhance your guests' experience and help them make the most of their visit to Philadelphia.

Practical Tips to Run a Successful Short-Term Rental Business in Philadelphia, Pennsylvania

To ensure a smooth and successful short-term rental business in Philadelphia, several practical tips can make a significant difference in guest satisfaction and compliance with local regulations.

Noise Regulations and Quiet Hours

Inform your guests about quiet hours to maintain a peaceful environment, especially in residential areas. Include clear guidelines on noise levels in your house manual to avoid potential complaints from neighbors.

Creating a Comprehensive House Manual

Develop both digital and physical house manuals that include essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This helps guests navigate the property easily and reduces the likelihood of misunderstandings.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with detailed instructions on how to access the property, along with photos to help them locate the smart lock and any other important features.

Parking Instructions

Include detailed parking instructions with photos in your house manual to help guests find suitable parking spots. This is particularly important in areas with limited or restricted parking, ensuring that guests do not inadvertently violate local parking regulations.

By implementing these practical tips, you can enhance the guest experience, reduce potential issues, and ensure your short-term rental business operates smoothly and in compliance with Philadelphia's regulations.

Here is a brief list of house cleaning providers in Philadelphia, Pennsylvania:

Philly Maid Green

• An eco-friendly cleaning service using handmade, non-toxic cleaners.
• Offers general cleaning, community clean-ups, and fair wages for employees.
• Services include DIY workshops and commitment to health and safety protocols.

Scrub!

• Provides professional house cleaning, housekeeping, and maid services in Center City Philly.
• Services include general cleaning, move-in/move-out cleaning, and insured/bonded professionals.

Evergreen Maids

• Offers premium cleaning services with a focus on consistency and hygiene.
• Services include recurring cleaning, deep house cleaning, and move-in/move-out cleaning.
• Known for highly trained cleaners and a satisfaction guarantee.

Cleanzen

• Provides various cleaning services including deep cleaning, regular cleaning, and specialized tasks like refrigerator cleaning and ceiling fan dusting.
• Offers a 100% money-back guarantee and an easy scheduling process.
• Services a wide range of neighborhoods in Philadelphia.

Philadelphia Short-Term Rental Management Fees: A Comprehensive Overview

In Philadelphia, Pennsylvania, short-term rental management fees can vary significantly, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management, which includes comprehensive tasks such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often starting at around 15% of revenue and potentially going higher based on factors like property size, type, and location.

Basic services, which might include only the essential management tasks like booking management and rent collection, may incur lower fees, often starting at around 10%. Additionally, property owners may encounter extra fees for specific services such as cleaning, repairs, or design and furnishing, which can add to the overall cost of managing a short-term rental property. Transparency in fee structures and clear communication between the property manager and the owner are crucial to ensure the property is managed efficiently and in line with the owner's goals and preferences.