Airbnb Rules in Pennsylvania | Laws, Regulations and Taxes

Navigating the legal landscape of short-term rentals is essential for ensuring the success and longevity of your Airbnb business. Without the proper permits, adherence to zoning laws and compliance with tax obligations, you risk facing significant fines or even the closure of your Airbnb vacation rental operation.

To make sure you are running an Airbnb that is completely above board, check out these rules and laws that govern Airbnbs in Pennsylvania.

Getting to Know Pennsylvania

Pennsylvania, often referred to as the Keystone State, is a Middle Atlantic gem that offers a diverse array of experiences. Its rich history is deeply rooted in the American story, from the Liberty Bell and Independence Hall in Philadelphia to the Civil War battlefields of Gettysburg.

Pennsylvania’s variety of landscapes, from bustling urban centers to tranquil countryside, along with its historical and cultural richness, ensures that there’s something for everyone. In Philadelphia, you can indulge in the city’s famous cheesesteaks, immerse yourself in sports culture and explore world-class museums. For those seeking natural beauty and outdoor adventure, the Poconos offer a perfect retreat. Easton lays claim to the first Christmas tree in the United States and the Crayola Experience. Traveling westward, in Gettysburg, you’ll find a town that preserves its Civil War heritage and offers a charming mix of vineyards, breweries, and cultural experiences.

Airbnb Laws and Regulations in Pennsylvania

There are no specific laws and regulations governing Airbnbs imposed through the Pennsylvania state government. Instead, they are specific to the county and city that the Airbnb vacation rental belongs to.

Here are some of the main Airbnb cities in Pennsylvania and the laws and regulations relevant to them.

Gettysburg

The Borough of Gettysburg classifies short-term rentals as accommodations available for stays of 30 consecutive nights or fewer. This category includes both owner-occupied and proprietor-occupied properties. In the case of Airbnb vacation rentals where a portion of the host’s personal residence is offered, it is referred to as a homestay. If the owner resides in a separate dwelling or offsite, the property is defined as a vacation rental.

Gettysburg requires both a Land Use Permit and a Certificate of Use & Occupancy.

If you want to operate a homestay, you must obtain a Homestay Residency Certification.

Airbnb vacation rentals can only be legally operated in permitted zones as per the zoning ordinance and must obtain zoning approval for short-term lodging.

Poconos

The Borough of Mount Pocono recognizes a short-term rental as all rentals (Airbnb and otherwise) that are for stays less than 30 consecutive days.

Each individual short-term rental unit requires its own license and licenses are only issued in the name of the owner. Licenses must be renewed annually.

Airbnb short-term rentals are only allowed in areas designated as permitted by Chapter 215 (zoning codes). Each dwelling unit must be situated in a lot of a minimum area of 0.50 acres.

Each Airbnb property is required to have a designated local contact person, be that the owner, property manager or other person, who will be contactable 24/7.

The Borough of Mount Pocono limits the number of overnight occupants allowed in each Airbnb rental to two people per bedroom plus two people (i.e. a two-bedroom short-term rental unit can have six people staying overnight). Bedrooms can’t be less than 70 sq ft in area or less than seven feet in any plan dimension and if they hold more than one person, must be at least 100 sq ft.

The borough also regulates notice of license within premises, safety requirements such as smoke detectors, fire extinguishers and sturdy stairs, noise levels and guests’ behavior. A minimum of one parking space per bedroom must be provided.

Philadelphia

The city of Philadelphia recognizes Airbnbs and other short-term rentals as residential property rented for fewer than 30 consecutive days at a time. This can be a spare bedroom, a rowhouse or an apartment.

When a primary residence or a room in it is rented out for the short term, they are defined as Limited Lodging and require a Limited Lodging Operator License. Limited lodging operators must live in the residence for at least half of the year.

When you rent a property or unit that is not your primary residence, you need a Rental License.

If you make reservations or collect payment on behalf of a limited lodging operator, you need a Limited Lodging and Hotels Booking Agent License.

Both property owners and tenants engaging in rental arbitrage can apply for these licenses except in the Tenth Council District where only the homeowners are eligible.

When a dwelling unit is rented out for the short term by a renter who calls it their primary residence, living there for over half of the year, it is defined as Visitor Accommodations.

Licenses must be renewed annually.

Airbnb operators are also required to apply for a commercial activity license. You can apply online or make an appointment to visit the Permit and License Center in person. You must also get a zoning permit.

The city requires safety measures such as smoke alarms on every floor and in every bedroom and carbon monoxide alarms.

Signs announcing lodging facilities are not allowed nor is changing the residence so that it no longer resembles a private residence.

Properties must be certified as being lead-free or lead-safe by the Philadelphia Department of Health and owners must certify they are following all rules on lead safety.

Hosts must notify guests of trash and recycling collection days and disposal rules and ensure there is no excessive noise.

Renters are only allowed to have guests between 8 a.m. and midnight. Guests must also be provided with contact information of the owner, property manager or other designee to handle complaints.

The city also requires property managers to keep records for at least one year showing the home continued to remain a primary residence, the dates the home was rented and the number of guests who stayed.

Easton

The city of Easton requires both a residential rental license and a business license to operate an Airbnb vacation rental within its borders.

Once you register with the city of Easton, an authorized agent of the city will conduct an inspection and then a re-check inspection to ensure all corrections have been completed. Additional re-inspections will incur additional fees.

The residential rental license will only be issued once the inspections have been passed, any overdue taxes and fees to the city have been paid in full and a business license has been obtained. The license must be renewed annually and an inspection conducted once a year by a Code Enforcement Officer.

Violation of city codes can result in penalties or revocation of the license. This includes safety, hygiene and not being contactable by the code enforcement officer.

Each guest must be provided an off-street parking space and no signage advertising or identifying the property as a short-term rental can be posted on the property. Short-term rentals are also not permitted if they are located within 500 feet of another short-term rental property.

Other Rules

Apart from short-term rental laws and regulations relevant to your location, make sure you check with other rules related to your property, such as contracts, leases, condo board, co-op and HOA rules as well as tenant organization rules.

Airbnb Taxes in Pennsylvania

Airbnb short-term rentals in Pennsylvania are subject to taxes on the state, county and city levels. Airbnb charges guests most relevant taxes and remits them directly to the relevant authorities. However, it is always best to check to ensure you are not missing out on tax payments. You can find the list of tax collections by Airbnb in Pennsylvania here.

The state of Pennsylvania charges Airbnbs and other short-term rentals a Hotel Occupancy Tax of 6% and a Local Sales Tax of 1% of the total listing price including cleaning fees.

Airbnb vacation rentals located in Easton owe a 4% Hotel Room Rental Tax to Northampton County while those located in Mount Pocono owe Monroe County a Hotel Excise Tax of 3%. Meanwhile, Philadelphia charges a Hotel Tax of 8.5% and Gettysburg, Adam County imposes a Hotel Room Rental Tax of 5%.

Mastering the Legal Landscape of Airbnb in Pennsylvania

The rules that govern short-term rentals including Airbnbs in Pennsylvania depend on the individual laws, regulations and taxes imposed by the state, county and city where your vacation rental property is located. 

Parsing through the different codes can be challenging, so it can be helpful to seek the advice of a lawyer or consultant to ensure you are aware of the up to date rules applicable to your Airbnb. And make sure you stay up to date as regulations can change, particularly in areas with rapidly growing short-term rental markets.