Short-Term Rental Rules Are Coming: What PA's First Statewide STR Law Means for Your Investment Property

Well-maintained suburban investment property in Springfield Township, Montgomery County, Pennsylvania

Pennsylvania is considering its first statewide regulatory framework for short-term rentals. House Bill 2303, introduced in March 2026, would establish uniform baseline requirements for Airbnb, VRBO, and similar short-term rental operations.

The bill is not law yet. As of August 28, 2026, HB 2303 remains under consideration in the Pennsylvania House Tourism, Recreation & Economic Development Committee. Owners should continue following existing municipal rules and state tax requirements while preparing for possible changes.

For investors in Philadelphia, Montgomery, Chester, Bucks, and Delaware counties, the proposal could affect how properties are registered, permitted, insured, operated, and monitored.

What Is HB 2303?

HB 2303 would create a statewide structure for short-term rental oversight while preserving the authority of municipalities to regulate land use and zoning.

The legislation follows a study by the Pennsylvania Joint State Government Commission. Its stated objectives include:

  • Establishing consistent registration and permitting standards
  • Improving safety and accountability
  • Helping local governments identify short-term rental properties
  • Supporting hotel occupancy tax compliance
  • Creating clearer responsibilities for hosts, booking platforms, counties, and municipalities

The bill was introduced by Representatives Lindsay Powell, Jennifer O’Mara, and Mary Jo Daley. A public hearing was held on March 25, 2026. The Pennsylvania House announcement describes the proposal as an effort to balance tourism and economic opportunity with neighborhood safety and quality of life.

The County Commissioners Association of Pennsylvania has expressed support for the bill’s goals while raising questions about whether counties have the resources and infrastructure to administer permits and enforcement. Those implementation questions could lead to revisions before the legislation advances.

Who Would Be Affected?

HB 2303 would apply broadly to short-term rental operators, including individual hosts, investors, professional managers, and larger portfolios.

The proposal identifies three operator categories:

1. Homestay operators

A homestay generally involves a property that serves as the operator’s primary residence. Proposed definitions identify a primary residence as one where the operator lives for at least six months each year.

The homestay category is intended for limited, owner-occupied activity. Current bill summaries indicate that a homestay operator could rent the primary residence for no more than 30 cumulative days per calendar year and operate no more than one additional short-term rental.

2. Vacation rental operators

This category would include most owners of non-owner-occupied short-term rentals, such as:

  • Investment properties
  • Second homes
  • Condominiums
  • Townhomes
  • Single-family rental properties
  • Units operated through Airbnb, VRBO, or similar platforms

For many Greater Philadelphia investors, this would likely be the most relevant category.

3. Corporate operators

A corporate operator would generally be an owner or operating entity with 10 or more short-term rental properties. This category would carry enhanced operational, safety, sanitation, and recordkeeping responsibilities.

The distinction matters. HB 2303 is designed as a tiered framework, meaning a small owner-occupied homestay would not necessarily face every requirement imposed on a larger professional portfolio.

County Registration and Annual Permits

One of the proposal’s central requirements is an annual county-issued permit for each short-term rental operation.

Counties would be directed to establish registries containing information about:

  • Short-term rental properties
  • Hotels
  • Other lodging establishments subject to hotel or occupancy taxes

Under the proposal, permit conditions could include:

  • Proof of liability insurance
  • Compliance with local nuisance ordinances
  • Compliance with occupancy limits
  • Designation of a responsible person who can respond to issues
  • Payment of reasonable permitting fees

The designated “person in charge” would need to be reachable 24 hours a day, seven days a week. For vacation rental operators, the proposed standard would also require that person to be able to arrive at the property within one hour when necessary.

This requirement is particularly important for owners who live outside the area. A remote investor with a property in Philadelphia, Springfield Township, or another suburban municipality may need a dependable local response system for emergencies, guest issues, complaints, and inspections.

Property owner reviewing short-term rental permits, insurance documents, and an occupancy checklist

Insurance and Safety Requirements

Vacation rental and corporate operators would generally be required to maintain at least $500,000 in liability insurance per occurrence. Proposed summaries indicate that homestay operators would receive an exemption from this specific insurance threshold, although other insurance and safety obligations could still apply.

Owners should review whether their current policy covers:

  • Short-term occupancy
  • Guest injuries
  • Property damage caused by guests
  • Loss of rental income
  • Commercial or business activity
  • Multiple properties under common ownership

A standard homeowners or long-term landlord policy may not provide adequate coverage for frequent transient occupancy.

The bill would also establish baseline safety expectations. These may include building, fire, smoke detection, carbon monoxide detection, egress, and occupancy standards.

Corporate operators would face additional requirements, including proposed standards involving:

  • Connected or remotely monitored carbon monoxide detection
  • Noise monitoring equipment
  • Exterior-only video surveillance at building entrances
  • Written cleaning and turnover protocols
  • Linen and towel sanitation records
  • Employee training documentation
  • Compliance with Department of Health requirements

These requirements reflect the higher guest volume and operational complexity associated with larger portfolios.

Taxes: What Owners Need to Know Now

HB 2303 would not eliminate existing Pennsylvania tax obligations. Owners should address current requirements regardless of whether the bill becomes law.

Pennsylvania generally imposes a 6% state hotel occupancy tax on stays of fewer than 30 days to the same guest. The tax can apply to homes, apartments, condominiums, and other lodging accommodations.

According to Pennsylvania Department of Revenue guidance:

  • Booking platforms may collect and remit the state hotel occupancy tax for reservations processed through their systems.
  • An owner who uses only a compliant booking agent may not need to register and remit the state tax separately.
  • Owners who accept direct bookings or use channels that do not collect and remit the tax may need a Sales, Use, and Hotel Occupancy Tax License.
  • Required registration and filings are handled through the state’s myPATH system.

Owners should also investigate county and municipal hotel room taxes. These obligations can vary by location and may be separate from state tax filings. Do not assume that Airbnb or VRBO collects every applicable local tax.

Maintain clear records of:

  • Gross booking revenue
  • Cleaning and guest fees
  • Taxes collected
  • Platform remittances
  • Direct bookings
  • Cancellations and refunds
  • Local registrations and filings

Tax treatment can depend on the property, booking channel, jurisdiction, and operating structure. Consult a qualified tax professional for advice specific to your circumstances.

Local Zoning Rules Will Still Matter

HB 2303 is not a substitute for local zoning approval. The proposal would create a statewide baseline, but it would not automatically make a short-term rental legal in every municipality.

Local governments could continue to regulate:

  • Whether short-term rentals are permitted
  • Which zoning districts allow them
  • Minimum rental periods
  • Occupancy limits
  • Parking
  • Noise and nuisance controls
  • Inspections
  • Certificates of occupancy
  • Rental licenses
  • Local fees and enforcement

Springfield Township, Montgomery County Spotlight

Springfield Township deserves particular attention because its published code does not appear to contain a clearly labeled Airbnb or short-term rental article. However, the Township does have rental dwelling regulations requiring applicable approvals, licenses, and inspections.

That does not mean every short-term rental is automatically permitted. Depending on the property’s zoning district and the Township’s interpretation, frequent transient occupancy could be treated differently from a conventional long-term rental.

Before listing a property in Springfield Township, an owner should:

  1. Confirm the property’s zoning district.
  2. Ask the Springfield Township Building & Zoning Department how Airbnb or VRBO use is classified.
  3. Determine whether a rental dwelling license is required.
  4. Ask whether a zoning permit, certificate of occupancy, or other approval applies.
  5. Confirm occupancy, parking, life-safety, and nuisance requirements.
  6. Request written guidance before accepting reservations.

The same approach applies throughout Montgomery, Philadelphia, Chester, Bucks, and Delaware counties. Local rules can differ significantly between a city, borough, township, and neighboring municipality.

How Higgins & Welch Can Help

Short-term rental compliance involves more than listing management. Owners must coordinate local approvals, inspections, insurance, guest communications, maintenance, taxes, and financial records.

Higgins & Welch Real Estate, Inc. provides property management and consulting services designed to help owners manage those details efficiently. Our property management division oversees property operations, maintenance, tenants, and finances. Our consulting division provides data-driven guidance for real estate transactions, investments, and development decisions.

Support may include:

  • Reviewing the property’s operating structure
  • Coordinating maintenance and safety work
  • Establishing local response procedures
  • Organizing property records
  • Supporting vendor and inspection coordination
  • Reviewing operating costs and revenue assumptions
  • Helping owners evaluate whether short-term or long-term use best fits the property

For investors considering an acquisition or refinancing, Higgins & Welch Appraisers, LLC also provides residential and commercial valuation products and consulting services throughout the Tri-State Area. A well-supported valuation can help owners evaluate the effect of short-term rental income, physical improvements, local restrictions, and alternative uses on a property’s market position.

As one Higgins & Welch client, Paul Fariello, explained, the firm helped “manage our portfolio allowing us to focus on the important stuff.” That service model is especially valuable when regulatory obligations are changing and owners need a reliable team managing the details.

A Practical Preparation Checklist

Because HB 2303 remains a proposal, owners should monitor its status rather than assume a final requirement or effective date.

In the meantime:

  • Verify local zoning and rental licensing requirements.
  • Confirm whether your insurance permits short-term rental activity.
  • Review your booking platforms’ tax collection policies.
  • Register through myPATH if you accept taxable direct bookings and are responsible for remittance.
  • Track county and municipal hotel room taxes separately.
  • Create a 24/7 emergency contact process.
  • Maintain smoke, carbon monoxide, fire, and egress records.
  • Keep occupancy and cleaning records.
  • Review your property’s financial performance under multiple rental strategies.
  • Recheck the official HB 2303 legislative page for amendments and status updates.

Pennsylvania’s proposed statewide framework would bring greater consistency, but compliance will still depend on the final legislation and the rules adopted by local governments. Owners who prepare now will be better positioned to protect their investment, serve guests responsibly, and respond efficiently if HB 2303 becomes law.

This article is for general informational purposes and is not legal, tax, zoning, or insurance advice. Requirements may change. Owners should confirm current rules with the applicable municipality, Pennsylvania Department of Revenue, insurance professional, and qualified legal or tax adviser.