Navigating Philadelphia’s New Short-Term Rental Regulations: Insights from Successful Variance Approvals

We previously wrote about changes to Philadelphia’s zoning laws which now mandate holding either a Visitor Accommodation (VA) permit or a Limited Lodging License for short-term rental (STR) properties, which you can read about here. While the VA permit is less restrictive than the limited lodging license, obtaining approval for a VA permit can be challenging due to specific zoning district requirements. However, a recent trend has emerged, where STR owners are applying for variances and appealing refusals to operate in non-compliant zones. 

Here at Console Matison, Joseph J. Console, our zoning and real estate attorney, recently secured a variance for a VA permit in a residential zoning district, signaling a potential avenue for STR owners to get approval to operate. In this post, we explore the evolving landscape of Philadelphia’s STR regulations and provide insights for property owners navigating the variance process.

The Variance Process:

Securing a variance for a VA permit involves a complex and lengthy process. Console Matison’s recent success highlights that while the variance route is promising, it comes with challenges. For a comprehensive understanding of the variance process, readers are encouraged to refer to Console Matison’s detailed article on variances found here.

Backlog and Appeal Process:

The surge in STR owners applying for variances has led to a backlog of appeals awaiting review by the Zoning Board of Adjustment (ZBA). The City is now addressing these appeals, and some applicants have achieved success. However, it’s crucial to note that the variance process is neither quick nor guaranteed. The backlog underscores the widespread interest and the challenges in obtaining approval.

Factors Influencing Success:

During the appeal process, Console Matison observed that applicants with a history of running an STR at the subject property for several years with no complaints were more likely to succeed. This insight suggests that the ZBA and Registered Community Organizations (RCOs) may be more lenient towards existing operators compared to new applicants. The City’s intent to regulate STRs in residential neighborhoods is evident, and new operations might face higher levels of scrutiny.

RCOs’ Response:

RCOs, the community groups responsible for assessing variance requests, are still in the early stages of developing a system to determine their support or opposition to short term rental variances. The uncertainty surrounding RCOs’ responses add an additional layer of complexity to the process.

Recommendations for STR Owners:

• Understand the Variances: Familiarize yourself with the variance process outlined in Console Matison’s detailed article. 
• Establish a Track Record: If you have been operating an STR successfully at your property for years with no complaints, you may have a higher chance of success during the appeal process. 
• Stay Informed: Keep abreast of updates in Philadelphia’s STR regulations, as the situation is dynamic and subject to change. 
• Engage with RCOs: Establish communication with your local RCO to understand their evolving stance on variances and garner support for your appeal.

While Console Matison’s recent variance approval is a positive development for STR owners, it’s important to recognize the challenges and uncertainties associated with the process. Navigating Philadelphia’s evolving STR regulations requires a strategic and informed approach. By staying informed, engaging with local organizations, and understanding the nuances of the variance process, STR owners can better position themselves in this dynamic landscape.

If you are experiencing any issues with licensing or zoning requirements for your short-term rentals or other properties, reach out to our full service Pennsylvania / New Jersey real estate firm Philadelphia Zoning / Console Matison at Info@ConsoleLegal.com.