Overview: Are Short-Term Rentals Allowed in Malvern, PA?

Short-term rentals (STRs) are allowed in Malvern, but they are actively being brought under a formal permitting and zoning framework. Malvern Borough has initiated that process through Ordinance 2025‑08, which proposes to amend the Borough’s Zoning Ordinance to regulate STRs (and also fences and walls). The ordinance was authorized for review by both the Chester County and Malvern Borough Planning Commissions in September 2025, consistent with the Municipalities Planning Code. Final adoption and full regulatory details have not yet been published in the documents provided.

In short:

• STRs are not outright prohibited in Malvern, PA.
• A zoning permitting and compliance framework is being developed and will likely include application, insurance, safety, parking, and location standards.
• Until final adoption and implementation, STR operators should monitor Borough communications closely and ensure they meet any applicable state-level requirements and general safety obligations.

How to Start a Short-Term Rental Business in Malvern

• Confirm zoning eligibility when Ordinance 2025‑08 is adopted. The amendment is expected to specify permitted zoning districts and operational standards for STRs. Do not assume a given property is eligible until the ordinance text is finalized.
• Prepare for a permit and inspection pathway. The Borough signaled an STR permitting process akin to the long‑term rental system. Expect an application, site inspection, and a certificate of compliance before listing.
• Put insurance in place. While the final STR insurance requirement is not yet published, best practice (and likely required) is to secure at least $1,000,000 in general liability coverage. Keep the policy active and available for inspection.
• Align operations with safety and zoning standards. The ordinance process signals that safety plans (e.g., fire escape routes) and parking standards will likely be part of the rules, as they are in nearby West Chester. Build these into your property design and guest communications now to minimize retrofit costs later.
• Confirm state tax obligations. In Pennsylvania, the state Hotel Occupancy Tax (often called the state “hotel tax”) typically applies to lodging of fewer than 30 days; current rate is 6% plus an additional 1% local assessment. You must register, collect, and remit if you meet the thresholds. Local municipalities may also levy an additional local tax; Malvern has not published a final STR-specific tax structure in the provided documents.
• Hold yourself out as the responsible party. If you hold yourself out as providing lodging to transient guests for less than 30 days, you are generally considered to be operating an STR and subject to applicable state and local lodging tax and registration requirements.

Required Documents, Permits, Licenses, and Guidelines

Based on the Borough’s ordinance review motion and practices in adjacent municipalities:

• Zoning and occupancy:

  • Confirm the property’s zoning district eligibility when Ordinance 2025‑08 is adopted.
  • Be prepared to demonstrate lawful occupancy and use under the zoning code.

• Borough short‑term rental permit:

  • A formal permit will likely be required, similar to the long‑term rental permitting pathway referenced by the Borough Solicitor.
  • Expect an annual or biennial permit, potential transferability, and fee schedule based on cost recovery.

• Insurance:

  • Maintain at least $1,000,000 in general liability insurance (best practice; confirm exact requirement at adoption).

• Safety and compliance:

  • Provide and maintain fire safety plans for each unit, including escape route maps.
  • Ensure compliance with life-safety codes (smoke/CO detectors, egress, fire extinguishers, posted emergency information).
  • Prohibit special events (e.g., wedding receptions) in STR units, as seen in nearby West Chester; adopt the same restriction to avoid conflicts.

• Parking:

  • Provide required off‑street parking spaces. In nearby West Chester, one off‑street space per rented bedroom is required (on-site, adjacent, or in a public garage/lot). Use this as a planning baseline until Malvern’s standards are published.

• Taxes and registrations:

  • Pennsylvania state Hotel Occupancy Tax: 6% state tax plus 1% local assessment on lodging charges for stays under 30 days. Register and file with the PA Department of Revenue; remit monthly or quarterly as instructed by your registration.
  • Collect and remit any applicable local lodging taxes as adopted by Chester County or Malvern Borough. Final local rates and filing cadence were not published in the documents provided.

• Records:

  • Keep guest logs, reservation records, and financial records sufficient for tax and permit audits.
  • Maintain proof of insurance, permit, and safety compliance documentation for inspections.

Note: The Borough has authorized legal counsel to work on ordinance amendments. The above expectations will be refined upon final adoption of Ordinance 2025‑08.

Specific Regulations for Short-Term Rentals in Malvern, Chester County, and Pennsylvania

• Malvern Borough:

  • Ordinance 2025‑08 is under review to amend the Zoning Ordinance for short-term rentals and fences/walls. Details on permitted districts, caps, inspection requirements, parking ratios, and fees will be published after adoption. Until then, assume that permits, insurance, safety plans, and parking standards will apply.

• Chester County (context from adjacent municipalities):

  • West Chester Borough’s STR ordinance—approved in November 2024—illustrates the standards that nearby municipalities have adopted. Key features:
    • STRs limited to the Town Center District.
    • Borough-wide cap of 20 units; waiting list when the cap is reached.
    • Annual borough permit, transferable to a future property owner.
    • One off‑street parking space per rented bedroom (on-site, adjacent, or in a public garage/lot).
    • $1,000,000 general liability insurance.
    • No student home may be used as an STR.
    • Special events prohibited (e.g., wedding receptions).
    • Fire safety plan required for each unit.
  • While Malvern’s ordinance may differ, it is reasonable to anticipate similar elements: zoning limits, cap or waiting list, insurance minimums, parking requirements, safety plans, and restrictions on large events.

• Pennsylvania (state level):

  • Hotel Occupancy Tax: 6% state tax plus 1% local assessment for stays under 30 days; register with the PA Department of Revenue and remit promptly.
  • General business obligations: Obtain any required local business licenses and comply with health, safety, and building codes.
  • Insurance: Maintain adequate general liability coverage; $1,000,000 is a common municipal benchmark in Pennsylvania.
  • Fair housing and advertising: Comply with federal and state fair housing laws and advertising rules (e.g., no discriminatory statements or depictions).

Contact Information (Local Authority)

• Malvern Borough Council

  • Address: 1 E. King St., Malvern, PA 19355
  • Phone: (610) 644‑1502
  • Website: www.malvern.org
  • Contact for ordinance updates: Borough Solicitor’s Office
  • Borough Manager: Nicole Whitaker (see Borough offices)
  • Note: The Borough regularly posts meeting agendas and ordinance updates online (see agenda and minutes references in the source material for confirmation of the ordinance review).

• Borough meeting information (Zoom option):

  • Dial‑in (toll‑free): 1‑877‑853‑5247
  • Meeting ID: 845 8284 3869
  • Meeting link: us02web.zoom.us/j/84582843869

Links to Source Pages (as provided)

• West Chester short-term rental ordinance announcement:

  • www.suburbanrealtorsalliance.com/news/2024/11/29/chester-county/west-chester-approves-short-term-rental-ordinance/

• Malvern Borough Council meeting materials and ordinance review:

  • www.malvern.org/sites/g/files/vyhlif8371/f/agendas/public_9.16.25_bc_packet_0.pdf

Important: This guide synthesizes publicly available Borough documents and related local news. Always verify the final adopted text of Malvern’s STR ordinance and any subsequent implementing guidance before opening for business.