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City controller report finds one-third of short-term rentals lack required licenses

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PHILADELPHIA (KYW Newsradio) — About one-third of short-term rental properties in Philadelphia are operating without the required license, according to a report from the Office of the City Controller.

Philadelphia has exacting regulations for short-term rentals, including two different types of licenses, depending on whether the host lives in the home or not, along with a commercial activity license, a business tax account, proof of lead certification, and other inspection reports.


But City Controller Christie Brady found that more than 1,000 units of about 4,000 listed on booking platforms lack the required license.

“It’s a public safety issue and a quality of life issue,” Brady said.

Brady said booking platforms require hosts to upload their licenses, but don’t check them. She found one that used an expired sidewalk cafe license, and another was an expired child care license from 2003.

“I believe that you could put any number up on the website and it would accept it,” she said.

Brady recommended simplifying the process and improving monitoring and enforcement with technology and data sharing.