The State of Pennsylvania offers multiple opportunities for affordable, yet profitable Airbnb property investments. Whether you go for one of the busy cities like Philadelphia or Pittsburgh or the smaller towns such as White Haven or Pocono Summit, the rich history and the beautiful nature guarantee year-round occupancy and strong vacation rental income. However, before you move forward with buying a property, you need to be familiar with the Pennsylvania short-term rental laws, at both the state and the city level.
This guide summarizes all the information you need to know about Airbnb rules and regulations in Pennsylvania, from how STRs are defined, all the way to what licenses and permits they require and how they get taxed. In addition to the statewide laws, we’ll also look at the city-specific regulations that govern Airbnb rentals in the top short-term rental markets in Pennsylvania.
If you need some extra help in launching your Airbnb business, don’t hesitate to get in touch with us at Checkmate Rentals. As an end-to-end vacation rental management company, we can help you figure out all legal requirements pertinent to your location and manage your property in a way that maximizes revenue. Our fees start at only 15% of monthly income for full-service Airbnb management.
Pennsylvania’s Definition of a Short-Term Rental Law
The Commonwealth of Pennsylvania does not have an elaborate definition of short-term rentals. For tax purposes, the state broadly defines a STR as renting out a property to provide lodging for less than 30 days to the same person. A definition to this effect is generally accepted by cities, towns, and counties across Pennsylvania.
How to Start a Short-Term Rental Business in Pennsylvania
The process of starting an Airbnb business in Pennsylvania varies from one market to another as some cities have adopted their own regulations in the absence of statewide vacation rental laws, while others keep STRs unregulated. The only common element is the need to register with state and local authorities to pay relevant taxes.
Meanwhile, some of the most common short-term rental requirements across Pennsylvania cities include:
- City or county short-term rental license or permit: Many local Pennsylvania Airbnb laws require owners or agents to obtain a special license or permit which typically needs to be renewed on an annual basis. To do this, the Airbnb property operator needs to submit a range of documents confirming compliance with local regulations.
- Zoning permit: In some markets, Pennsylvania vacation rental property owners need to have a zoning permit ensuring that their zoning district allows STRs.
- State and local tax certificates: Paying various Airbnb taxes is a must across Pennsylvania. To be ready to pay taxes, business owners need to register with state and local tax authorities before listing their property.
- Short-term rental insurance: Even if a minimum Airbnb insurance is not legally required, Pennsylvania investors should get property damage and liability coverage to avoid expensive situations down the road.
- Inspection: Many local authorities necessitate a safety inspection before they issue a STR permit or license to the property. In some cases, inspections need to be conducted regularly.
- Minimum safety equipment: Some city ordinances demand from Pennsylvania short-term rental properties to have a certain number of smoke alarms, carbon monoxide detectors, and fire extinguishers.
- Maximum overnight occupancy: Local Pennsylvania short-term rental regulations usually limit the maximum number of overnight guests based on the number of bedrooms in the property.
- Minimum number of off-street parking spaces: Local authorities demand from hosts to provide a certain number of on-site parking spaces, aligned with the number of bedrooms in the home.
- Local contact person: Pennsylvania Airbnb hosts need to secure a local contact person who is available to address issues 24/7, especially if they live away from the vacation rental home.
- Documentation: STR owners or agents need to prepare a variety of documents before having their Airbnb business ready to be launched. The specific documents vary from one place to another but generally include owner’s contact information, agent’s contact information, information about the property and the parking situation, information about the number of bedrooms and the maximum occupancy, and others.
- Fees: Investors need to pay a few different fees related to obtaining permits, licenses, and certificates as well as inspections.
As the city-specific rules differ, you have to check the website of the authorities governing your specific market or consult with a local legal expert who can ensure that you start your Pennsylvania vacation rental business on the right footing. Working with one of the best property managers in the state can also significantly simplify the process while guaranteeing compliance with all legal requirements and regulations.
Licensing Requirements for Short-Term Rentals in Pennsylvania
While short-term rental licensing and permitting is not required at the state level, many Pennsylvania cities and counties decided to introduce their own regulations in order to protect local communities and residents without prohibiting this profitable economic activity. As a result, some Pennsylvania markets expect vacation rental property owners or their agents to obtain a STR permit or license before listing the property for renting. In these locations, it is illegal to run an Airbnb business without a license, which can lead to hefty fines.
Short-Term Rental License Renewals in Pennsylvania
In general, the Pennsylvania counties and cities that demand short-term rental permits require them to be renewed on an annual basis. This is a standard procedure where some documents need to be submitted, usually online. Renewal fees are affordable.
Required Documentation for Pennsylvania Short-Term Rentals
The documents that are needed to start a short-term rental business in Pennsylvania are easy to obtain. Most of them aim to provide information about the owner, the agent, the local contact person, the property, and the available parking spaces. In some cases, proof of insurance is also required.
Pennsylvania Short-Term Rental Taxes
All Pennsylvania Airbnb properties need to pay taxes to be legally compliant. It’s important to note that the hotel occupancy tax, equivalent to a sales tax, can be collected and remitted by short-term rental marketplaces, such as Airbnb and Vrbo. If an owner only lists their property via websites that collect and remit taxes, they don’t need to register with the tax authorities. However, if they plan to market their rental in additional ways, they have to hold a tax certificate.
The standard taxes that Pennsylvania STR investors need to cover include:
- Pennsylvania hotel occupancy tax: 6%, remitted to the Pennsylvania Department of Revenue
- Local hotel tax: Varying rates, remitted to the county
- Short-term lodging income tax at federal and local rates
- Property tax at state and municipal rates
- Wage tax if the business has paid employees
While taxes are an obligatory part of doing business, the good news for Pennsylvania real estate investors is that they can realize savings by reducing their taxable income via deductible business operating costs. Eligible deductibles include:
- Real estate depreciation
- Mortgage interest
- Mortgage insurance premium (MIP)
- Property tax
- Short-term rental insurance
- Property remodeling or fixes and repairs
- Costs related to getting the property guest-ready, such as design, furniture, smart home devices, appliances, electronics, and more
- Fees charged by Airbnb managers
- Marketing and advertising costs
- Housekeeping expenses
- Professional fees such as legal and accounting costs
- Property maintenance
- Business-related travel
- Home office expenses
It’s important to understand all applicable tax deductions and use them in your tax forms to lower the total amount of taxes you need to pay and boost your bottom line as a business owner. Consulting with a local accountant can help you figure it all out easily.
Pennsylvania Short-Term Rental Regulations at the State Level
The Commonwealth of Pennsylvania does not impose any statewide Airbnb laws. The only requirement is for owners to register with the state and local tax authorities to pay relevant taxes. And even this step can be skipped in case you rent out exclusively through short-term rental websites that collect and remit hotel room taxes on behalf of hosts.
Pennsylvania Short-Term Rental Rules by City
Amid the lack of state-level vacation rental laws, some Pennsylvania counties and cities have enacted their own regulations. The purpose is to maintain the good state of the local housing market and to offer protection and safety to local residents. Generally speaking, while city-level short-term rental laws achieve this goal, they don’t restrict Airbnbs unnecessarily.
Let’s take a look at the vacation rental regulations in some of the top Airbnb investment locations in Pennsylvania:
1. Philadelphia, Pennsylvania Short-Term Rental Laws
The City of Philadelphia considers homes or rooms in them that are rented out for fewer than 30 days at a time to be STRs.
All Pennsylvania short-term rental operators, which can include the owner or their agent, need to obtain the following documents:
- Commercial Activity License
- Zoning Permit for limited lodging use if the property has a primary resident and for visitor accommodation use if the property does not have a primary resident
- Limited Lodging Operator License for limited lodging use rentals
- Rental License with a hotel designation for visitor accommodation use rentals
- Philadelphia Business Tax Account ID
The fee for issuing and renewing a Limited Lodging Operator License is $150, while the fee for a Rental License is $90. Both licenses need to be renewed on an annual basis.
In addition, Philly Airbnb rentals need to comply with certain regulations to guarantee the safety of guests, including:
- Having a smoke alarm in each bedroom, in the hallways in the immediate vicinity of the bedrooms, and on each floor
- Having a carbon monoxide alarm within 15 ft. of every bedroom or bed in sleeping areas, centrally on a wall or the ceiling next to bathrooms, and within 5 ft. of cooking appliances
- Not posting signs for lodging on the home
- Not changing the house in a way that makes it no longer resemble a private residence
- Limiting occupancy to no more than three people who are not related by blood, marriage, life partnership, adoption, or foster-child status, including the owner and residents
- Providing proper trash containers and information about trash and recycling collection days and trash disposal rules and regulations to renters
- Providing information about the owner or the designated contact person to renters
- Keeping short-term rental records for at least one year
In terms of taxes, Philadelphia vacation rental operators need to pay the following:
- Hotel Tax at a rate of 8.5% of the total amount received from guests
- Net Profits Tax (NPT) at a rate of 3.75% for residents and 3.44% for non-residents
- Business Income and Receipts Tax (BIRT) in case of total gross receipts of $100,000+. The net income tax rate of the BIRT is 5.81%, while the gross receipts tax rate is 0.001415.
- Wage Tax in case of employees, at a rate of 3.75% for residents and 3.44% for non-residents
In sum, Philadelphia, PA short-term rental laws allow both primary and non-primary residences to be rented out on a daily basis, without restrictions related to the maximum operations per year. Combined with the multiple tourist attractions that Philly has to offer, this is one of the best Airbnb markets in Pennsylvania. While there are a number of taxes that vacation rental owners need to pay, the good Airbnb income still leads to excellent profitability.
2. Pittsburgh, Pennsylvania Short-Term Rental Laws
In December 2024, the City of Pittsburgh launched the Rental Permit Program, which regulates rental activities within the city without differentiating between short-term and long-term rentals. Chapter 781 Residential Housing Rental Permit Program defines a rental unit as a dwelling unit or structure containing dwelling units or sleeping units that is leased by the owner or the person in control of the unit to any tenant for any period of time.
All Pittsburgh landlords and Airbnb hosts need to obtain a Rental Permit after undergoing a property inspection to ensure compliance with local regulations. A separate Permit is needed for each individual rental unit on separate premises.
Rental Permit applications need to provide the following information:
- Rental unit’s street address and parcel number
- Number of dwelling units or sleeping units within the rental unit
- Owner’s contact information including name, residence address, phone number, email address, and mobile phone number
- Applicant’s current, valid government-issued photo ID
- Current valid certificate of occupancy for the rental unit, with some exceptions
- Authorized agent’s name, address, phone number, and email address in case the applicant cannot allow or schedule entry for PLI inspection
- Part A of the HUD contract if applicable
- ACHD operational permit if applicable
Pittsburgh Rental Permits need to be renewed on an annual basis as well as in case of ownership change or change in the permit registration information.
Getting a permit for an Airbnb rental property in Pittsburgh subject to a number of fees, albeit small, including:
- Flat fee of $16.00/rental unit for permit registration
- Flat fee of $5.50/rental unit for permit inspection
- Flat fee of $14.00/dwelling unit or sleeping unit for permit inspection
For tax purposes, Pittsburgh vacation rental operators have to register with the Special Tax Division. A hotel room rental tax of 7% is levied on all short-term rental activities.
To conclude, while as of recently Pittsburgh, PA requires the permitting of all rental properties, short-term rentals remain relatively unlimited and unrestricted. Both owner-occupied and non-owner occupied Airbnbs are a viable option, and taxes are not too high. This makes Pittsburgh a good option for investors looking to buy a vacation rental in one of the biggest cities in Pennsylvania.
3. Farmington, Pennsylvania Short-Term Rental Laws
Farmington, an unincorporated community and census-designated place in Wharton Township, Fayette County, does not have any specific Airbnb laws. This means that Farmington STRs are unregulated and allowed in all areas, with no restrictions on non-owner occupancy and the number of days for which they can be rented out per year. Still, short-term rental operators are expected to pay relevant business taxes in line with state and local regulations.
The lack of Airbnb rules makes Farmington an ideal place for investing in vacation rentals, which bring an average ROI of 16%, which is really high at the market-level. This return is the result of an ADR of $211, an Airbnb occupancy rate of 48%, and an average home price of $231,000. Guests are attracted to the picturesque mountain views, the natural caverns, and the historic sites in the area. As the Farmington short-term rental market is still relatively small, it holds exciting opportunities for beginner investors, looking for affordable and non-demanding opportunities.
4. Champion, Pennsylvania Short-Term Rental Laws
The City of Champion has not enacted any Airbnb laws and regulations. Accordingly, both owner-occupied and non-owner occupied Champion short-term rentals are legal for an unlimited number of days per year. All that Airbnb operators need to do is to pay taxes to the state and local authorities.
Meanwhile, Champion offers excellent revenue and profit opportunities year-round. The access to the endless outdoor activities including hiking trails and skiing slopes brings thousands of visitors throughout the year. As a result, Champion boasts an Airbnb ROI of 14%, with an average annual short-term rental income of $36,000. The ADR is high at $283, especially taking into consideration the low property prices of $248,000. Different types of vacation rentals, including cabins, chalets, cottages, townhouses, and others, make for attractive options in the Champion, PA market.
5. Pocono Summit, Pennsylvania Short-Term Rental Laws
Pocono Summit Airbnb properties are regulated by the short-term rental regulations of Coolbaugh Township, where the unincorporated community and census-designated place is located. They are incorporated as Chapter 324 Short-Term Rentals of the Township of Coolbaugh, PA Codes.
A short-term rental is defined as a dwelling unit that is rented or leased in whole or in part for a transient use (for a period of less than 30 consecutive days) in exchange for rent, compensation, or remuneration of any kind. This includes single-family, two-family, and multifamily dwelling units that are or are not primarily used as permanent residences or seasonal/vacation homes. This means that both primary residences and investment properties qualify as legal Pocono Summit STRs.
Operating a Pocono Summit Airbnb business requires a short-term rental license, which can only be issued to the owner of the property. A separate license is needed for each dwelling unit used as a STR. Licenses need to be renewed annually and are not transferable.
Submitting a STR license application requires the following documentation:
- Owner’s name, address, phone number, and email address
- Managing agency, agent, or contact person’s name, address, and 24/7 phone number
- STR photo taken from the access road
- Drawn-to-scale floor plan
- Acknowledgement of all designated bedrooms of at least 70 sq. ft.
- Number of bedrooms and maximum number of overnight occupants
- Total number of dwelling units in the property and number of dwelling units used as a STR for two-family and multifamily dwelling structures
- Diagram or photo showing the number and location of on-site parking spaces and the maximum number of allowed vehicles for overnight occupants
- Acknowledgement that the owner, agent, or contact person has read all pertinent regulations
- Acknowledgement that the owner, agent, or contact person will post the required notice
- Acknowledgement that the owner, agent, or contact person will post the required emergency address sign
- Copy of the current Monroe County Hotel Room Excise Tax Certificate
- Copy of the current Pennsylvania Sales Tax Certificate
- Short-term rental liability insurance for a minimum of $500,000
The initial license application fee is $200. Pocono Summit short-term rental licenses need to be renewed every year, and the annual renewal application fee is $150.
In addition, Airbnb owners need to pay pertaining taxes to the state and local authorities.
To conclude, Pocono Summit short-term rental laws aim to protect local communities and guests without imposing impossible restrictions on Airbnb business owners. The lenient laws and the strong market performance make this one of the absolutely best locations for Airbnb investing in Pennsylvania.
Pocono Summit has not only the highest ROI in Pennsylvania but also one of the strongest returns nationwide, at 18%. The expected annual STR income is $45,000, resulting from an ADR of $376 and an occupancy of 49%. This unmatched performance is attributed to the breath-taking nature and views and the year-round outdoor activities provided by the Pocono Mountains. Meanwhile, the average home price of $227,000 makes Pocono Summit an affordable option for new investors as well as other investors on a tight budget.
6. White Haven, Pennsylvania Short-Term Rental Laws
White Haven Borough regulates short-term rentals with Ordinance No. 1 of 2018. The borough refers to STRs as vacation home rentals, which are defined as a dwelling within a residential dwelling unit rented for the purpose of overnight lodging for a period of not less than 1 day and not more than 30 days.
White Haven short-term rentals need to comply with the following requirements:
- Have a designated local person, property manager, or agent acting as a local contact in case the owner resides more than 20 miles from the rental
- Limit overnight occupancy to no more than 2 persons per bedroom with the maximum number of bedrooms not exceeding 5 per vacation home rental
- Make all written agreements and documents available to the White Haven Borough Code Officer, law enforcement officials, and the Fire Chief
- Have at least 1 off-street parking space per bedroom
- Ensure that guests do not create unreasonable noise or disturbances, do not engage in disorderly conduct, and do not violate provisions of the Zoning Code
- Direct lights used for exterior illumination away from adjoining properties
- Prohibit outdoor burning
- Place a notice on the front door that the property has been approved as a vacation home rental including the contact information of the owner, agent, Airbnb management company, or local contact; the maximum allowed occupancy; the maximum number of allowed vehicles; the number and location of on-site parking spaces and parking rules; and the trash pick-up day
- Register the names, addresses, and contact numbers of all guests with the Borough Zoning Officer at least a week before the rental
- Undergo an annual inspection by a White Haven Borough designee
All White Haven Airbnb properties need to be registered with applicable Pennsylvania Commonwealth and Luzerne County offices, including taxing authorities. They are subject to an annual fee of $350. In addition, they have to pay relevant state and local short-term rental taxes.
White Haven Borough has some of the most specific Pennsylvania short-term rental laws, but both owner-occupied and non-owner occupied vacation home rentals remain allowed and only minorly regulated. The most important rule to keep in mind is that guests need to be reported a week before their stay, which takes some planning on behalf of the host or the Airbnb manager in terms of marketing and securing bookings well in advance.
But it’s totally worth it considering the average White Haven ROI of 15% for STRs. This strong performance results from an average daily rate of $241, a high occupancy rate of 67%, an annual revenue of $41,000, and a low average real estate price of $208,000.
Bottom Line
There are no statewide Pennsylvania short-term rental laws, except the requirement to pay a hotel tax. Meanwhile, some local markets have introduced their own laws to regulate Airbnb properties, ensure zoning and safety compliance, and collect further taxes. Still, Pennsylvania remains one of the most Airbnb host-friendly states nationwide, where both owner-occupied and non-owner occupied vacation rentals are generally allowed. Moreover, they don’t face restrictions in terms of the number of days for which they can be rented out per year. Combined with the strong potential for profit, Pennsylvania can be a great place to start or expand your Airbnb portfolio.
Looking for help in launching your Pennsylvania short-term rental property? Check out Checkmate Rentals. We offer end-to-end Airbnb management services that are personalized to the specific needs of each property and owner. Unlike other companies, we co-host your property with you so that you own the listing forever. On top of that, our fees start at only 15% of monthly revenue, with no hidden costs.
