Regarding the physical lease agreement.

The municipality requires a physically signed lease agreement from me. However, OpenRent doesn’t require a physical signature. Is there a digital solution that can meet the municipality’s physical signature requirement?

I assume you mean your local Borough or County Council. The use of municipality either suggests you are back in the 70’s or in a foreign land.

can you elaborate why they require a copy of the AST?

digital signatures are a modern & legally acceptable form of contract, so I’d be asking the Council why they still feel the need for a pot of ink.