New Inspection Requirement for Limited Lodging Licenses Begins on June 1, 2025

Beginning June 1, 2025, the Philadelphia Department of Licenses and Inspections (L&I) will require that all new and renewal applications for a Limited Lodging Operator License will need to include inspections of the property.

How will the application process change?

Applicants for new or renewal Limited Lodging Operator Licenses will submit information on eCLIPSE or in person by appointment with L&I as before.

If the application is in order, you will receive preliminary approval and instructions to schedule an inspection with an L&I Quality of Life inspector. Make sure you receive preliminary approval first, before scheduling.

Most of the inspections will be virtual over mobile phone, but applicants can request an in-person inspection.

What are the inspectors looking for?

The inspectors are making sure that the limited lodging is following the rules. Under Philadelphia zoning laws, the use of a property is very important. Limited Lodging Operator Licenses are for people who want to rent out their primary residences for short periods of time: 30 days or less. These rentals are not meant to be hotels or investment properties, and there are different license and zoning requirements for those uses. These inspections will ensure that applicants are who they say they are, the properties are their primary residences, and they are safe.

To verify that dwellings conform to limited lodging requirements, this is what inspectors will look for during the inspections:

• The main dwelling unit — the property — is mainly used as a household for living, and the housekeeping facilities, like the stove and sink, are shared by the members of the household.
• The limited lodging is a secondary, accessory use to the primary household use.
• There is not a separate entrance into the building visible from the street for accessing the limited lodging.
• There is no accessory signage.
• There are smoke and carbon monoxide alarms in the dwelling as required by the Philadelphia Fire Code. There must be one smoke alarm on each floor, including the basement, and at least one carbon monoxide alarm in the dwelling.
• The limited lodging has proper garbage storage containers.

Timing is everything — how to plan your application and renewal

Naturally, adding one-on-one inspections to the license creation and renewal process will make everything more time-consuming, and applicants must plan accordingly.

Not only do you need to make an appointment with an inspector, but you must also make sure you will be at the property during the appointment window. Yes, window. Appointments are made in three-hour slots, and the inspection will take place sometime during that timeframe.

When planning, people who are first applying for a Limited Lodging Operator License should keep in mind that they initially need to obtain a permit. There are several more steps involved with setting up taxes and a business license before applying for the Limited Lodging Operator License. Once the license application is submitted, it will take seven to 14 business days to be reviewed, and this is all assuming that the application is correct and the prerequisites are in order.

Once preliminary approval is obtained, the City is asking all applicants to allow at least 10 days for an inspection to be completed.

All told, a new license application, from submission to approval, can take up to 24 days for review and inspection, and this does not include the time needed for the permit application and approval, and all the other steps it takes to prepare the application.

Renewals are usually faster and easier, as long as there are no background problems that can create a hitch. Renewals should receive preliminary approval quickly if there are no issues, but they will still get snagged by the 10-day inspection window. The City strongly recommends submitting renewal applications as soon as they become available, 45 days before expiration, to avoid lapses. Remember, Limited Lodging Operator Licenses must be renewed every year.

At the time of writing, the system was just getting implemented, so it remains to be seen how the inspections will go in practice and whether the 10-day window will remain the standard.

What happens if the inspection fails?

During the inspection, the inspector takes photos. They will either give you an approval and you will receive your license, or they will give you a list of deficiencies that you need to fix.

You have 60 days from receiving notice of a failed inspection to schedule a second one. Unfortunately, if that inspection fails, the application will be denied.

How to handle the additional red tape

At Philadelphia Zoning, we handle all of the bureaucracy for our Limited Lodging Operator License clients by walking them through the permit process, gathering all the documents and information they need for their licenses, handling all the preliminary steps, and submitting applications for them.

Unfortunately, virtual inspections are something that we can’t handle. But we do educate our clients about the rules concerning Limited Lodging Operator Licenses, to help ensure that when inspection time comes, it’s nothing more than an inconvenience.

If you have any questions about getting a Limited Lodging Operator License or permit, or if you would rather let us handle it for you, please reach out with the form below, or email us at info@philadelphiazoning.com.