Reading Short-Term Rental Regulations

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Permit & Licensing

Zoning Permit for Short-Term Rental (accessory use)

This permit type does not require primary residence. Zoning restriction: Permitted by right as an accessory use in the C-C, C-R, C-N, and C-H Commercial Districts; permitted by special exception in the R-3 Residential District.

Application Process

Hosts apply through the City's Zoning Permit process administered by the Community Development Department's Zoning Office; properties in the R-3 District require Zoning Hearing Board special exception approval, while C-C/C-R/C-N/C-H properties are permitted by right. A separate annual rental (housing) registration and business license are also required, and properties are subject to periodic City inspection (about every 5 years, per the City's April 2026 Council update). As of that update the City had received no completed short-term rental applications.

Tax Obligations

Combined rate: 11% of gross rental income.

Collection: Some home-sharing platforms voluntarily collect and remit the PA Hotel Occupancy Tax on the host's behalf; if a host does not exclusively use such a platform, the host must register with the PA Dept. of Revenue and collect/remit the tax directly via myPATH. The Berks County Hotel Room Rental Tax (5%) is collected and administered separately by the Berks County Treasurer via monthly remittance.

Filing: Monthly

Rental Limits

Reading does not impose an annual cap on the number of nights you can rent.

Occupancy & Density Limits

2 persons per bedroom (overnight guests), maximum 12 overnight guests; day guests limited to an additional 50% of maximum overnight occupancy

Zoning & Restrictions

• Short-term rentals are permitted by right as an accessory use in the C-C, C-R, C-N, and C-H Commercial Districts, and by special exception in the R-3 Residential District.
• In R-3, an STR in a detached/semi-detached/attached one-family dwelling must be at least 1,000 ft from another STR; in the commercial districts the minimum separation is 500 ft.
• An STR may also occupy one unit in an apartment building of 9 or fewer units, or up to 20% of units in a building of 10 or more units.

Insurance & Safety

Insurance

Reading does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Penalties for Non-Compliance

Zoning Ordinance violations (including short-term rental provisions) are enforced through a civil enforcement proceeding: a judgment of not less than $100 and not more than $500 per violation, plus court costs and reasonable attorney fees. Each day a violation continues is a separate violation.

Market Snapshot

Demand context for Reading from official government and tourism statistics — the latest published annual figures, not a projection of rental income.

Figures are the latest annual statistics published by the linked official sources (retrieved 2026-07-13). Visitor counts cover the geography stated by each source, which can be wider than the city itself. Regulations above — not market conditions — determine whether and how you may operate.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Reading:

1. Apply for Zoning Permit for Short-Term Rental (accessory use). Submit application + $150 fee.
2. Register for tax accounts. Set up lodging tax accounts with Pennsylvania Department of Revenue and Berks County Treasurer's Office.
3. Collect and remit taxes. 11% on all bookings.
4. Renew annually. Contact city for renewal fee details.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Reading?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Reading requires a Zoning Permit for Short-Term Rental (accessory use).

How much does a short-term rental permit cost in Reading?

A Zoning Permit for Short-Term Rental (accessory use) in Reading costs $150 per year.

Does Reading require a short-term rental to be your primary residence?

No. Reading allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Reading?

Reading does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Reading?

Short-term rental stays in Reading are subject to a combined 11% in lodging taxes. This combines 6% Pennsylvania Hotel Occupancy Tax + 5% Berks County Hotel Room Rental Tax. Hosts are legally responsible; many booking platforms collect and remit them automatically on the host's behalf.

What are the penalties for short-term rental violations in Reading?

Penalties run up to $500 per violation (see the Penalties section for the full schedule).