Thinking about renting out your Delco home? Between licenses, inspections, and taxes, it can feel like a maze. You want to do it right, protect your investment, and avoid fines. In this guide, you’ll learn the local rules that matter in Delaware County, what inspectors look for, and how to stay on top of taxes with confidence. Let’s dive in.
Who sets the rules
Most rental rules in Delaware County are set by your municipality. Townships and boroughs handle rental licensing, inspections, occupancy limits, and business taxes. Requirements vary, so start with your code office or municipal website. For example, Upper Darby posts its rental license and inspection details online, and Radnor, Media, Haverford, and Chester share their programs on their sites too.
- Upper Darby rental licensing and inspections: Upper Darby Licenses & Inspections
- Radnor rental regulations and limits: Radnor rental properties
- Haverford inspection fees and rules: Haverford Building & Codes
- Media Use & Occupancy program: Media inspections
- Chester rental registration: Chester Licenses & Inspections
Rental licenses
Expect to register each rental unit and pay a fee. Many municipalities require an annual license and ask you to update tenant info when it changes. Some places renew every one to three years. Check your township or borough page for forms, deadlines, and current fees.
Inspections: what to expect
Most municipalities require a rental or use-and-occupancy inspection before new tenants move in. Many also inspect on a regular cycle, often annually to every three years. Typical checklists include exterior condition, stairs and railings, electrical and GFI outlets, plumbing, operable windows and screens, hot water and relief valves, dryer venting, and evidence of pests.
- Example checklist and program: Upper Darby rental inspections
- Occupancy and student limits appear in some towns. Radnor lists limits and procedures here: Radnor rental properties. Haverford outlines inspection rules and fees here: Haverford Building & Codes.
Safety devices
Pennsylvania and local codes require working smoke alarms and, where there are fuel-burning appliances or an attached garage, carbon monoxide detectors. Inspectors commonly look for a smoke alarm on each level and near sleeping areas. For placement and safety guidance, see the state’s overview: PA Office of the State Fire Commissioner.
Lead disclosure for pre-1978 homes
If your property was built before 1978, federal law requires you to disclose known lead-based paint information, give tenants the EPA/HUD pamphlet, and include the required warning in the lease before signing. Keep signed disclosures for your records. Learn more here: EPA lead-based paint disclosure rule.
Security deposits in Pennsylvania
Pennsylvania caps the security deposit at two months’ rent for the first year and one month after that. Deposits over 100 dollars must be held in escrow at an insured institution. You must return the deposit, or an itemized list of deductions with any remainder, within 30 days after the lease ends when the tenant provides a forwarding address. See a plain-language summary of the rules: Security deposits in PA.
Taxes you will owe
Staying on top of taxes is part of running a rental. Here is how they break down for Delco landlords.
Property taxes
County, municipal, and school district property taxes apply. Delaware County mails county tax bills in February and publishes the discount period for early payment on the Treasurer’s page. Review the current year details here: Delaware County Treasurer.
Transfer tax on sale
When you sell, Pennsylvania charges a 1 percent state realty transfer tax. Delaware County adds a local transfer tax, and some municipalities set different local rates. The County lists exceptions such as Radnor, Upper Darby, Chester, and Upper Providence. Confirm the current rate before closing: Delaware County transfer taxes.
Federal and PA income tax
Report rental income and deductible expenses on IRS Schedule E. For guidance on depreciation, repairs, and reporting, see IRS Publication 527. Pennsylvania taxes net rental income at a flat 3.07 percent and explains filing here: PA personal income tax.
Local business taxes
Many municipalities in Delco require a Business Privilege or Mercantile License and annual filings for landlords. Requirements and thresholds differ by town. Start with your municipality’s code office or tax collector. For example, Upper Darby outlines its rental licensing program here: Upper Darby Licenses & Inspections.
Short-term rentals
If you rent for fewer than 30 days, hotel occupancy and sales tax rules can apply. The Pennsylvania Department of Revenue explains how short-term rental income is treated and when to register and remit taxes: PA guide to rental income.
Quick compliance checklist
- Identify your municipality and confirm registration, inspection schedule, fees, occupancy limits, and business tax rules. Use your township or borough website. Examples: Upper Darby, Radnor, Media, Haverford, Chester.
- Register your unit and schedule the required inspection before move-in.
- Verify smoke and CO detectors, GFI outlets where required, safe stairs and railings, proper egress, water heater relief lines, and dryer venting. Prep using your town’s checklist.
- For pre-1978 homes, give tenants the EPA/HUD lead pamphlet and signed disclosure before lease signing. EPA lead rule
- Follow PA security deposit limits and the 30-day return rule. Document move-in condition with photos and keep receipts. PA deposit rules
- Report rental income on federal Schedule E and on your PA return at 3.07 percent. Review short-term rental tax steps if applicable. IRS Pub 527 | PA tax guidance
- Before selling, check the current local transfer tax rate for your municipality. Delco transfer taxes
Ready to rent in Delco?
With the right checklist and a little prep, you can license your unit, pass inspection, and keep your taxes organized. If you want a local perspective on what attracts reliable tenants and how to position your property, let’s talk. Connect with the Carney Team to align your rental strategy with what Delco renters are looking for right now.
FAQs
Do I need a rental license to lease my Delaware County home?
- In many Delco municipalities you must register each unit and obtain a license before tenants move in; check your township or borough’s rental page such as Upper Darby’s program for an example.
What inspection items do Delco townships usually check?
- Inspections typically verify smoke and CO detectors, electrical and GFI outlets, plumbing, safe stairs and railings, egress, hot water and relief valves, dryer venting, and pest control, with timing at tenant turnover and on a set cycle.
How much security deposit can Pennsylvania landlords charge and when must it be returned?
- Pennsylvania caps deposits at two months’ rent in year one and one month after that, and landlords must return the deposit or an itemized deduction list within 30 days after lease end when a forwarding address is provided.
How is rental income taxed for a Delaware County owner?
- Report rental income and expenses on federal Schedule E and on your PA return at the 3.07 percent state rate; short-term rentals may also require sales and hotel occupancy tax registration.
What realty transfer tax applies when I sell my Delco rental?
- Pennsylvania charges 1 percent and local rates apply on top, with some Delco municipalities listing different local rates; confirm your property’s municipality rate on the County’s transfer tax page.
