Tele-(remote) rehabilitation is attracting increased attention from society, including the research community and commercial marketplace with an estimated global market value of $160 billion. Meanwhile, mobile device-based healthcare ("mHealth") has appeared as a revolutionary approach to tele-rehabilitation practice. This paper presents a systematic review of the literature on smartphone-based systems designed for remote facilitation of physical rehabilitation. A total of 74 documents from Web of Science search results were reviewed. Systems were classified based on target medical conditions, and a taxonomy of technology was created along with identification of monitored activities. Beyond monitoring, some systems also provide patient-caregiver communication and progress management functions. The review identifies major research interests in stroke, cardiac disease, balance impairment and joint/limb rehabilitation; however, there is a lack of attention to other diseases. There are also few systems that have computerized existing clinical tests. On the basis of the review, design recommendations are formulated to encourage implementation of advanced functionalities, usability considerations, and system validation based on clinical evidence. Results of this study may help researchers and companies to design functions and interactions of smartphone-based rehabilitation systems or to select technology.