Landlord Leasing Guide
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Landlord Leasing Guide
Leasing can be a great way to earn passive income, but it can also be a complex and challenging process. As a landlord, you need to navigate legal requirements, find reliable tenants, and ensure that your property is well-maintained. That’s why we’ve created this leasing guide to give you all the information you need to successfully lease out your property. Whether you’re a new landlord or an experienced one, this guide will provide you with valuable insights and tips to make the leasing process smoother and more successful. So, let’s get started!
In Philadelphia County, you will need a few licenses and certificates before you can legally rent your unit out. We have outlined the various licenses and certificates below and explain how to obtain them.
Certificate of Rental Suitability:
Below are the steps you need to take to obtain your Certificate of Rental Suitability:
- Obtain your Commercial Activity License (CAL) – we have found that the best way to get this is to go to the Municipal Services Building (MSB) at 1401 John F Kennedy Blvd.
- Now that you have your CAL, you will need to get your Rental License – you can do this at the MSB OR online after you have your Commercial activity License. It is $63 (per rental unit) and you must renew this every year and pay the $62 renewal fee (per rental unit) each year.
- Once you receive your Rental License, click here to obtain your Certificate of Rental Suitability (CRS). The CRS is a document that is required of you to submit to your tenants prior to their lease. In order to get a Certificate of Rental Suitability, you can’t have any outstanding violation notices related to the property, except for violations pending appeal where the owner has notified L&I.
The owner of the leased space must provide a property that:
- Is safe and habitable.
- Has fire protection and smoke detectors that are in good working order.
- The owner must maintain the property throughout the lease.
*Judges in Philadelphia are cracking down on landlords and require this document to be presented at all eviction cases.
Partners in Good Housing Brochure:
The Partners in Good Housing Brochure must accompany the Certificate of Rental Suitability (CRS). The City of Philadelphia, on behalf of its citizens, has set minimum health, safety, and maintenance standards for houses and apartments. Meeting these standards involves a partnership between tenants, landlords, and the City government. All three must work together to provide decent housing for all Philadelphians. The information in this guidebook applies to Philadelphia, Pennsylvania, and is based on the Code of General Ordinances of the City of Philadelphia – particularly Title 4, the Building Construction and Occupancy Code, and Title 9,
Regulation of Businesses, Trades, and Professions. Additional information, including online access to this booklet, as well as access to the Building Construction and Occupancy Code (which includes the Philadelphia Property Maintenance Code) and the Philadelphia Fire Code, is available at the Department’s website: http://www.phila.gov/li.
Lead Paint Responsibilities:
If your property was built before 1978, you must provide tenants with certification that it is lead-free along with all supporting results, before the lease is signed. Beginning October 1, 2020, landlords are required to test and certify rental properties as “lead-safe” or “lead-free,” regardless of a child’s age, before they:
- Execute a new or renewed lease OR
- Receive or renew a rental license
To read more about the lead paint laws and regulations in Philadelphia, click here.
If you need a suggestion of a lead tech that we have used in the past, feel free to find our preferred lead tech by going to our website: Preferred Vendors
Once you obtain your “lead-safe” or “lead-free” certificate, you must upload your certificate and lead test results and complete a questionnaire here.
Other important Lead Documents to be included with your Lease:
- Lead Paint Disclosure (we will provide for you to review and sign)
- Lead Paint Brochure Click Here to Read
Bed Bugs:
Landlords must develop and follow a bed bug control plan to prevent and control of bed bug infestations.
You must give tenants:
- An informational notice from the City of Philadelphia about bed bugs and landlord/tenant responsibilities
- A written description of bed bug infestation and remediation in the rental unit within the preceding 120 days and of any ongoing remediation
Within ten business days of receiving a written complaint about bed bugs in a rental unit, you must hire professional pest control services to investigate the complaint and begin remediation if an infestation is found.
- Remediation services must continue until there is no longer evidence of bed bugs in the unit. The unit must be monitored for the next 12 months to check for re-infestation.
- In buildings with four or more units, the pest control professional must also investigate whether there are bed bugs in the units above, below, and next door.
Smoking Disclosure:
Smoking Disclosure (needed when you are renting 3 or more units within 1 property):
Landlords of buildings with three or more units must provide tenants with a copy of the building smoking policy. The policy must include whether or not smoking is:
- Prohibited in all dwelling units
- Allowed in all units
- Allowed in some units
Tenant Screening:
We strongly recommend that all Landlords follow City and State regulations and guidelines pertaining to fair housing. Information on screening Tenants can be found here:
- Philadelphia’s Tenant Screening Guidelines – Philadelphia has created these guidelines for all landlords to follow when screening tenants.
- Source of Income Discrimination – Landlords cannot discriminate based on source of income. This means that all applicants, regardless of their type of income, must be allowed to apply for a unit and be screened equally.
Utilities:
Gas (PGW)
Tenants transfer gas to their name at the start of the lease. The landlord must have gas on in the case home is vacant and an inspection is scheduled OR repairs are needed where the contractor needs gas on. We strongly suggest that all landlords research and enroll in the Landlord Cooperation Program with PGW.
Landlord Cooperation Program (LCP):
Electric (PECO)
Tenants transfer electricity to their name at the start of the lease. The Landlord must have electricity on if the home is vacant and an inspection is scheduled OR repairs are needed where the contractor needs electricity.
Water
Remains in the Owner’s name. Each month, the Owner sends the Tenant an invoice for water and the Tenant pays the water bill with their rent payment.
Water Line and Sewer Line Protection (Owners of buildings with 1-4 residential units):
It is strongly recommended that you research and sign up for water line and sewer line protection. Click on the link above to learn more about the program and to sign up.
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Key Legacy Realty
Licensed in Pennsylvania
Key Legacy Realty
100 N 18th St, Suite 300, Philadelphia, PA 19103