Landlord Essentials

Landlords in Philadelphia face a challenging set of rules and regulations. Below are my answers to some of the most frequently asked questions I hear.

A: The Business Privilege Tax (BPT) is required of every person who wants to engage in business in Philadelphia. This includes the generation of rental income. The BPT Identification number and license are issued on a lifetime basis for the fee of $300 (as of Jan.1, 2009). Once obtained, the BPT license can be uses for all business within the city. Applications and requirements can be downloaded from the city's web site.

A: Any property owner who rents his/her property to others needs to have a current rental license. The license is issued by The Philadelphia Department of Licenses and Inspections.

In order to get a rental license, property owners need the following: an active Business Privilege License number, an active Business Privilege Tax Identification number, and knowledge of the property and what type of license is needed. Owners will need a license for each rental property they have.

A: All owners that rent property are required to obtain a Certificate of Rental Suitability issued by the Department of Licenses and Inspections no more than sixty (60) days prior to a tenant moving in.

The certificate can be issued for properties that do not have critical code violations. The fee for the certificate is $25.00. The printed certificate will include the required owner's attestations.

A: The city has compiled a 21-page handbook that outlines minimum health, safety and maintenance standards for houses and apartments. The handbook should be given to new tenants upon their signing of a lease.

The Partners for Good Housing handbook is based on the Philadelphia Building code, and it outlines the responsibilities for both landlords and tenants.

A: Landlords can be held liable for tenants' unpaid gas bills. To help protect owners against the placement of liens on their rental properties for unpaid tenant gas bills, the Greater Philadelphia Association of Realtors, the Homeowners Association of Philadelphia, Bob Elfant (Elfant Wissahickon Realtors), Mark Seidman, Greg Damis (2006 President, Greater Philadelphia Association of Realtors), Paul Cohen (Cohen & Wilwerth) and Philadelphia Gas Works set up the Landlord Cooperation Program in 2006.

Owners can visit PGW's LCP siteto register for the program. Once owners are registered and remain in a cooperative status, their residential rental property will not be liened during the term of the LCP. If owners are not registered, they can be liened for unpaid gas bills beginning Sept. 1, 2009.

Q: What are the city's requirements for smoke detectors and carbon monoxide detectors?

A: Philadelphia Code (Bill No. 192) states that smoke detectors are required in one- & two-family dwellings. It also establishes that the owners and occupants/tenants are responsible for upkeep and testing. Owner certifications of installation and operation are mandatory upon application and renewal of rental property licenses.

Upon the sale of a one- or two- family dwelling, the Seller needs to certify in writing to the Buyer that the required smoke detectors have been installed according to code. For the sale of a 3-plus unit building, there must be a system for the common area that operates on a secondary power source. For more information, please consult the Philadelphia Fire Code.

Philadelphia also recently passed an ordinance requiring carbon monoxide detectors in all one- & two-family dwellings. The law took effect Jan. 1, 2009, and it states that the alarms must be made by a nationally recognized laboratory and include detection and alarm devices. Owners and occupants/tenants are responsible for upkeep and testing.

A: A security deposit is money which actually belongs to the tenant, but is held by the landlord for protection against damages or unpaid rent. The Pennsylvania Landlord Tenant Act places a limit on the amount of a security deposit that a landlord may charge.

After five years the landlord cannot increase a security deposit even though the monthly rent is increased. Problems and disputes can be directed to the Attorney General's Bureau of Consumer Protection at 1-800-441-2555.

A: The Fair Housing Act of 1968 prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability).

Property owners must adhere to the federal guidelines when renting property to prospective tenants.

Q: What are the essential documents to have for a residential lease in Philadelphia?

A: 1) Pennsylvania Residential lease, 2) 'Protect Your Family From Lead in Your Home' pamphlet, 3) 'Mold, Moisture and Your Home' pamphlet, 4) the 'Partners for Good Housing' handbook, 5) PGW Landlord/Tenant cooperation addendum.

Q: I received a letter from the Streets Department that states I have to file a Commercial Solid Waste and Recycling plan. What's that?

A: A businesss located in Philadelphia must recycle, and you must prepare a plan for recycling to file with the Streets Department. The plan may be prepared and submitted online at the city's website. In order to file a plan, you must have (1) a BRT number, (2) a recycling vendor's information, (3) information about the owner or manager of your property's business, and (4) the types of material that will be recycled. Violations or failure to implement the plan could result in a $500 fine.

This list of Questions and Answers is not intended to be comprehensive and may include errors and omissions. The content is provided without warranties of any kind, either express or implied and is not permitted for use, re-distribution or publication without express written permission. Greg Damis is not responsible for any outside use of this content.

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