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

Yes. Short-term rentals are explicitly allowed in Reading, Pennsylvania, but only under defined zoning categories and with compliance to city licensing, permitting, and operational rules. The City of Reading adopted a zoning amendment that permits short-term rentals by right in several commercial districts and by special exception in the R-3 residential district. The definition of “short-term rental” used by the city is lodging for overnight stays up to 30 consecutive days.

Source links:

• News coverage: www.wfmz.com/news/area/berks/reading-area/short-term-house-rentals-face-new-regulations-in-reading/article_87ac5925-35ca-46c1-92f1-80d8ae111d48.html
• Council agenda/adopted ordinance: www.readingpa.gov/images/City_Council_regular_agenda/10-13-25.pdf
• Draft zoning amendment (full text): www.readingpa.gov/images/council_special/Zoning_Amendment_STR_9-22-25.pdf
• Public hearing agenda/procedural materials: www.readingpa.gov/images/City_Council_regular_agenda/Amend_Zoning_Ord_STR__PH_9-22-25.pdf
• News summary: www.thepenn.org/news/state/short-term-house-rentals-face-new-regulations-in-reading/article_52cfd328-719d-5acb-82a1-a085334b360f.html

How to Start a Short-Term Rental Business in Reading, PA

Investors and property owners should follow a structured approach to launch an STR that is compliant with Reading’s zoning and licensing framework:

1. Confirm zoning eligibility

   • Verify the subject property is in one of the districts where STRs are permitted:
     • By right: C-C Commercial Core, CR Commercial-Residential, CN Commercial Neighborhood, C-H Commercial Highway.
     • By special exception: R-3 Residential.
   • If the property is in a non-permitted district (e.g., R-1 or R-2 low-density residential), plan to seek a zoning variance.
   • Check distance requirements (below) and existing STR presence before proceeding.

2. Determine applicable use type and occupancy limits

   • Single-family detached, semi-detached, or attached (townhouse) dwellings within eligible districts.
   • Apartments within buildings with nine (9) or fewer units: “no more than one STR” per building.
   • Buildings with ten (10) or more units: STRs limited to no more than twenty percent (20%) of total apartment units.

3. Secure required authorizations

   • Zoning permit: Required for all STRs prior to operation.
   • Operating license: Required for all STRs (the city administration referenced an operating license during deliberations; confirm the current licensing office process and fee).
   • If applying in R-3, pursue a special exception; for properties in non-permitted districts, pursue a zoning variance.

4. Prepare for compliance and inspections

   • After paying the zoning permit fee, expect an annual inspection to confirm compliance with the ordinance requirements.

5. Operate within the rules

   • Appoint a local record owner or designated manager/agent residing or maintaining an office within thirty (30) miles of the STR.
   • Adopt house rules, enforce occupancy limits, and ensure off-street parking (or acceptable alternative).

Source links:

• Zoning districts and allowances: www.readingpa.gov/images/council_special/Zoning_Amendment_STR_9-22-25.pdf
• Permitting and inspection note: www.readingpa.gov/images/council_special/Zoning_Amendment_STR_9-22-25.pdf

Required Documents, Permits, Licenses, and Guidelines

• Zoning Permit

  • Must include a supplemental use and occupancy agreement, property maintenance specifications, nuisance provisions, and any additional documentation required by the Zoning Office.
  • Submit to the City Zoning Office as part of application review.

• Operating License

  • Required to operate an STR; the city administration referenced this license in public hearing testimony. Confirm the issuing department, application requirements, and fees with the City Clerk or Licensing Office.

• Compliance Documentation

  • House rules and regulations must be maintained at the STR unit.
  • Parking arrangements must be documented if relying on public facilities within 700 feet.
  • Designated principal person (at least 25 years old) for agreements and responsibilities.

• Inspections and Annual Compliance

  • Annual inspection is required post zoning permit issuance to ensure ongoing compliance with the ordinance.

Source links:

• Zoning permit contents: www.readingpa.gov/images/council_special/Zoning_Amendment_STR_9-22-25.pdf
• Inspection note: www.readingpa.gov/images/council_special/Zoning_Amendment_STR_9-22-25.pdf

Specific Regulations for Short-Term Rentals in Reading, PA

Zoning Permissions

• By Right: C-C, C-R, C-N, C-H districts (as an accessory use for residential occupancy).
• Special Exception: R-3 district (as an accessory use for residential occupancy).
• Not Permitted (without variance): R-1 and R-2 low-density residential districts (seek a zoning variance).

Source links:

• District permissions: www.readingpa.gov/images/council_special/Zoning_Amendment_STR_9-22-25.pdf

Distance and Concentration Limits

• Single-family dwellings (detached/semi-detached/attached) in:
  • R-3 district: STR unit must be at least 1,000 feet from another permitted STR.
  • Commercial districts (C-C, C-R, C-N, C-H): STR unit must be at least 500 feet from another permitted STR.
• Apartments in buildings with nine (9) or fewer units: No more than one (1) STR per building.
• Apartments in buildings with ten (10) or more units: No more than twenty percent (20%) of total units may be STRs.

Source links:

• Distance and concentration requirements: www.readingpa.gov/images/council_special/Zoning_Amendment_STR_9-22-25.pdf

Occupancy and Parking

• Overnight guests: Limited to two (2) persons per bedroom; in any case, no more than twelve (12) overnight guests.
• Day guests: Maximum number allowed on the property at any time is fifty percent (50%) of the maximum overnight occupancy (e.g., 6 day guests if maximum overnight occupancy is 12).
• Parking: At least one (1) off-street parking space is required; alternatively, use of public parking facilities within seven hundred (700) feet may be acceptable if spaces are available to the STR.

Source links:

• Occupancy and parking rules: www.readingpa.gov/images/council_special/Zoning_Amendment_STR_9-22-25.pdf

Operations, Conduct, and Prohibitions

• Management: Record owner or designated manager/agent must reside or maintain an office within thirty (30) miles of the STR; at least one (1) person over 25 years old must be designated as the principal person/tenant responsible for agreements and conduct.
• Conduct: Guests may not engage in disorderly conduct, create unreasonable noise, or violate city codes; the owner/manager is responsible for preventing such issues.
• Sleeping and use: Outdoor overnight sleeping is prohibited; overnight occupancy of recreational vehicles, camper trailers, and tents on the STR property is prohibited.
• External appearance: STRs must not have any outside appearance indicating a change of use from surrounding residential uses (key boxes are permitted).
• Sub-leasing: Prohibited.
• Incompatible uses: STR cannot be used as an apartment, bed and breakfast, boarding house, rooming house, multi-family dwelling, shelter, social quarters, and/or care facility.

Source links:

• Operational rules and prohibitions: www.readingpa.gov/images/council_special/Zoning_Amendment_STR_9-22-25.pdf

Inspections and Enforcement

• Annual inspection following zoning permit issuance.
• General enforcement actions are endorsed by the record owner of the STR property.

Source links:

• Inspection and enforcement: www.readingpa.gov/images/council_special/Zoning_Amendment_STR_9-22-25.pdf

Effective Date and Process Notes

• The ordinance became effective ten (10) days after approval, consistent with the City’s Home Rule Charter.
• The City Council held a public hearing on September 22, 2025, and enacted the ordinance at a subsequent meeting (October 13 or 27, 2025).
• Existing STRs must apply for zoning and approvals on a “first come” basis; if not permitted or within distance limits, property owners can seek a zoning variance.

Source links:

• Hearing and enactment timeline: www.readingpa.gov/images/council_special/Amend_Zoning_Ord_STR__PH_9-22-25.pdf
• Council agenda/enactment: www.readingpa.gov/images/City_Council_regular_agenda/10-13-25.pdf
• Public testimony reference: www.readingpa.gov/images/council_special/Zoning_Amendment_STR_9-22-25.pdf

County and State Regulations (Context)

• The Berks County Planning Commission reviewed and commented on the proposed amendment in July 2025; county guidance was incorporated into the city process, but county-level STR permits or fees were not identified in the provided materials.
• The Pennsylvania state statutory framework that enables municipalities to regulate land use through zoning is the Pennsylvania Municipalities Planning Code (MPC). Reading’s ordinance derives its authority from this framework; however, the MPC does not impose a statewide STR license or uniform fee. Investors should confirm whether any state-level tax obligations (e.g., state/local hotel taxes) or registration requirements apply directly to STR operations in Reading. The provided materials do not enumerate state tax or registration details.

Source links:

• County planning review: www.readingpa.gov/images/council_special/Amend_Zoning_Ord_STR__PH_9-22-25.pdf
• Zoning enabling reference: www.readingpa.gov/images/council_special/Amend_Zoning_Ord_STR__PH_9-22-25.pdf

Contact Information (Local Authority)

• City Clerk (for procedural inquiries, applications, and hearing schedules)
  • Name: Linda A. Kelleher, CMC, City Clerk
  • City: Reading City Hall
  • Mailing Address: City Clerk’s Office, Reading City Hall
  • Phone: Not provided in the materials; contact the City Clerk’s Office via City Hall main line or email.
  • Email: Not provided in the materials.
• City Council
  • Meeting information and legislative updates are published via Zoom and in Council agendas. For hearing schedules and public comment procedures, consult the City Clerk’s Office.

Notes:

• The Zoning Office is the primary authority for zoning permits; licensing and operating license inquiries should be directed to the City Clerk or the appropriate licensing office.
• Due to limits in the provided materials, direct phone numbers, emails, and department websites for the Zoning Office and Licensing Office are not included. Contact the City Clerk’s Office for current department contact details.

Source Pages (Links)

• WFMZ news article on Reading’s new STR regulations: www.wfmz.com/news/area/berks/reading-area/short-term-house-rentals-face-new-regulations-in-reading/article_87ac5925-35ca-46c1-92f1-80d8ae111d48.html
• Reading City Council agenda/adopted ordinance: www.readingpa.gov/images/City_Council_regular_agenda/10-13-25.pdf
• Draft zoning amendment text (Short-Term Rentals): www.readingpa.gov/images/council_special/Zoning_Amendment_STR_9-22-25.pdf
• Public hearing agenda and procedural materials: www.readingpa.gov/images/City_Council_regular_agenda/Amend_Zoning_Ord_STR__PH_9-22-25.pdf
• The Penn coverage (reprint): www.thepenn.org/news/state/short-term-house-rentals-face-new-regulations-in-reading/article_52cfd328-719d-5acb-82a1-a085334b360f.html

Practical reminder for investors:

• Proceed only after verifying your property’s zoning classification, confirming compliance with distance and concentration limits, and securing both the zoning permit and operating license.
• Maintain detailed records (house rules, parking plan, guest limits, management arrangements) and prepare for annual inspections to ensure uninterrupted operations.