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Updated over 3 years ago on . Most recent reply

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Caleb Hoover
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Single Room Rental in Primary Residence

Caleb Hoover
Posted

Hello Bigger Pockets Community!

My wife and I recently purchased a new primary residence in Philadelphia. We plan to rent out a bedroom to a trustworthy, reliable friend given that we are not using the entire space (3 BR house, finished basement with egress well), and can use the supplemental income to pay down other debts. However, we want to make sure that we have all of our bases covered in regard to tax liability and licensing. Philadelphia's guidance for this particular situation is a bit unclear. The tax liability seems fairly straightforward. I will need to open a tax account with the City in order to receive an Activity License Number. From there, I can report my annual rental income, and pay the school tax by 4/15:

https://www.phila.gov/2021-10-....

https://www.phila.gov/services...

However, I am unclear on whether or not this will require me to obtain a rental license given that I am renting out a single bedroom in my primary residence. I have contacted L&I (311) and they were not all that helpful, other than stating that a license would be required. It seems that a rental license for my property will be denied given current single-family zoning (RSA-5). As far as other rental suitability hurdles go, the property is a new construction and would not need lead paint certification. Has anyone else experienced a similar issue, or obtained a rental license for a single bedroom in Philadelphia? I know the odds of a potential issue (eviction, licensing violation, etc.) are fairly slim in this scenario, but I was hoping to get some guidance.

Thanks!

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