You are reading this blog because you probably have some sort of interest to invest or educate yourself about Airbnb Philadelphia, Philadelphia Airbnb rentals or the Philadelphia real estate market. In all cases, the consumer market has been evolving considerably in the last decade and Airbnb has revolutionized the renting industry for both investors and customers.
Airbnb, in fact, has become the world leader for short-term lodging as there are over 2.3 million Airbnb listings currently which average over 500,000 stays per night.
Airbnb Philadelphia is growing so fast. In the Philadelphia metropolitan area, there are about 3,000 Airbnb listings available on any given day as for 2018. Moreover, Airbnb listings account for 14 percent of the guest-room supply in central Philadelphia and Airbnb Philadelphia counts 8,200 active rental listings, which includes full-time bed and breakfasts in the Philadelphia area.
These figures encourage investors to consider Airbnb Philadelphia as a successful investment. However, to get a better understanding of Airbnb Philadelphia and make up your mind whether or not to invest in Airbnb Philadelphia, let us take a look at Airbnb Philadelphia regulations.
Airbnb Philadelphia Regulations
Airbnb’s regulations and rules vary from state to state. Philadelphia legalized and began taxing Airbnb rentals in 2015, making it one of the largest cities in the U.S. where residents can rent out their homes legally on a daily basis. In that year, it is reported that from April to September, Airbnb Philadelphia and its listings increased up to 270 percent.
Philadelphia, Bill No. 150441-A indicates pretty much everything you need to know in terms of running a legal Airbnb in Philadelphia. For example, you need a rental permit if you plan on purchasing a multi-unit as an Airbnb property.
On the other hand, if one of the units is owner-occupied, a rental permit is not needed. Moreover, if a single family home is being used as an Airbnb and accommodates guests less than 90 days throughout the year, a permit is not required.
In addition, title 14 of the Philadelphia Code governs land use in Philadelphia; therefore, if you are interested in investing in Airbnb Philadelphia properties, you should check it to make sure your Airbnb listings are in accordance with zoning requirements.
Moreover, section 14-604 of the Code, which is related to business registration and tax, does not specify any provisions requiring operators of short-term rentals to obtain a separate commercial activity license for short-term rentals from the Department of Licenses and Inspections.
Make sure to check Chapters 19-2600 and 19-3800 of the Philadelphia Code to see if your listing requires registration and/or payment of business taxes.
As for building and housing standards, Airbnb Philadelphia rentals must comply with certain requirements set forth in Section 14-604 of the Code, which has regulations and rules specifying design, construction, and building standards. It also states regulations on safety, health, and habitability.
There is no doubt that the legality of Airbnb in Philadelphia highly encourages real estate investors to invest in Airbnb Philadelphia. In any case, before you decide to buy a property as an Airbnb investment in Philadelphia, make sure to be up-to-date with the local laws and regulations.
Furthermore, if you still have inquiries or questions in mind, it is advisable to contact the City Planning Commission or other city agencies or even consult a local lawyer or tax professional.
Interested to know about other US cities with the least Airbnb legal issues? Read “Which Are the US Cities with the Least Airbnb Legal Issues at the Beginning of 2018?“
Airbnb Philadelphia Market
One of the major factors that affects the success of investing in Airbnb Philadelphia is the situation of the Philadelphia economy in relation to the real estate market. That is why it is important to understand the market before actually investing in Airbnb Philadelphia.
The Philadelphia economy is on the rise in 2018 with regards to customers’ demand and Airbnb Philadelphia’s property sales. As Philadelphia is ranked as one of the top large metropolitan areas, there is a noticeable job opportunities growth alongside population growth, which causes more demand for housing and enables more people to invest in Airbnb rentals.
Economic growth that Philadelphia witnesses alongside its mesmerizing and colorful architecture, priceless arts and historical museums and parks with the touch of cultural diversity make it one of the top destinations for tourists in the US.
Moreover, unlike other cities such as NYC and San Francisco, it is easier to find affordable short-term rentals in Philadelphia. In fact, Smartassets listed Philadelphia, Pennsylvania as one of the ten most profitable Airbnb cities in the current US housing market. All in all, the real estate market in Philadelphia seems optimistic and encouraging for investors interested in investing in Airbnb Philadelphia.
Read “Here Is the US Real Estate Market Forecast for the Beginning of 2018“ to get an insight into the situation of the US real estate market analysis for 2018.
How Can Mashvisor Help?
As a real estate investor or an aspiring one, it is not enough to check the Philadelphia real estate market and Airbnb Philadelphia regulations, you need to dig deep and conduct a real estate market analysis and have an idea of Airbnb Philadelphia expected income and return on investment at the time of your investment in accordance with your financial plan and investment goals.
Successful real estate investors also need to be familiar with the relevant Airbnb data and metrics, such as the Airbnb cap rate, Airbnb cash on cash return, and Airbnb occupancy rate, as well as the Airbnb profitability calculator.
That is when Mashvisor comes into play as it does the job for you. Mashvisor has an advanced investment property calculator, also known as a rental property calculator. It is an online real estate investing tool in which real estate property investors input some basic information about a real estate investment property.
The tool then provides investors with all the crucial numbers needed to decide whether or not to go for this income property in any part of the U.S.
Mashvisor’s investment property calculator provides you with ready figures for the level of the city, neighborhood, and properties. Knowing these figures will help you understand buyers’ and sellers’ behaviors and hence enable you to know when to buy Airbnb Philadelphia properties, when to invest and where.
Bottom Line
Investing in Airbnb Philadelphia in 2018 seems optimistic for real estate investors; however, investing in short term rentals is not for everyone as it needs a comprehensive understanding of the market and a constant following of the rules and regulations governing investing in or purchasing rental properties in Philadelphia.
As there are many factors playing role in forming your decision to invest in Airbnb or traditional rentals, it is advisable to speak with experienced investors or agents and sign up for Mashvisor to get an experienced platform available 24/7 and in a wink of an eye.