New Orleans Short Term Rental Regulation: A Guide For Airbnb Hosts

What are Short Term Rental (Airbnb, VRBO) Regulations in New Orleans, Louisiana?

Short-term rentals in New Orleans, Louisiana, are regulated by the city council, which has placed strict limits on the industry. In March 2023, the city council enacted a law that places sharp limits on short-term rentals, which was upheld by a federal judge in February 202412. The law includes a one-per-square-block limit on permits, a lottery to award permits in blocks with more than one applicant, and a ban on corporate ownership. These regulations only apply to residential zones, as short-term rentals in commercial areas fall under a different set of regulations.

To operate a short-term rental in Louisiana, property owners must obtain a state sales tax registration certificate and research and acquire local permits and licenses, which may vary by parish or city. In New Orleans, a $1,000,000 commercial general liability insurance policy is required3. Starting a short-term rental business in Louisiana involves understanding state and local regulations, obtaining necessary licenses and insurance, ensuring tax compliance, and preparing operationally.

By diligently adhering to these guidelines, entrepreneurs can establish a successful and compliant short-term rental business in Louisiana.Short-term rental hosts in Louisiana are required to collect applicable taxes from guests and remit them to the proper authorities. Failure to comply with state and local tax laws can result in fines and interest penalties4.

The definition of a short-term rental in Louisiana is an accommodation rented for fewer than 30 consecutive days, encompassing various types of rentals, including nightly and weekly ones. Rentals must occur in a legal dwelling unit, and rentals exceeding 30 days are classified as long-term, thus not requiring a short-term rental (STR) permit.

Navigating the licensing requirements for short-term rentals in Louisiana demands attention to detail and compliance with state and local regulations. By fulfilling these obligations, property owners can legally benefit from the lucrative short-term rental market, ensuring a safe and enjoyable experience for guests.

Starting a Short Term Rental Business in New Orleans

Starting a short-term rental business in New Orleans involves obtaining the necessary permits and licenses. The city has specific regulations that govern short-term rentals, and these rules are enforced by the Short Term Rental Administration (STR Office), a part of the Department of Safety and Permits.

• Permits and Licenses

To operate a short-term rental in New Orleans, hosts must first obtain the necessary permits and licenses. As of August 31, 2023, all existing Residential Short-Term Rental (RSTR) and Interim (ISTR) permits will expire. To operate a short-term rental legally after August 31, 2023, hosts must apply for a Non-Commercial Short-Term Rental (NSTR) license. The NSTR license allows hosts to operate a short-term rental in non-residential zones, such as commercial or industrial areas.

• Affidavit from Landlord

To operate a short-term rental in New Orleans, hosts must provide an affidavit from the landlord with written permission, which allows the tenant to host if they are a tenant. This affidavit is an important document that ensures the legality of the short-term rental and helps maintain order in the city's residential areas.

• Lottery System

The city has implemented a lottery system for the issuance of NSTR permits. One of the three permits is chosen through a lottery, while the additional two must go through a complicated special exemption process. This system aims to ensure fairness in the allocation of permits and to limit the number of short-term rentals per square block.

Short Term Rental Licensing Requirement in New Orleans

As of August 31, 2023, all existing Residential Short-Term Rental (RSTR) and Interim (ISTR) permits will expire. To operate a short-term rental legally after August 31, 2023, hosts must apply for a Non-Commercial Short-Term Rental (NSTR) license. The NSTR license allows hosts to operate a short-term rental in non-residential zones, such as commercial or industrial areas.

Required Documents for New Orleans Short Term Rentals

To operate a short-term rental in New Orleans, hosts must provide an affidavit from the landlord with written permission, which allows the tenant to host if they are a tenant. This affidavit is an important document that ensures the legality of the short-term rental and helps maintain order in the city's residential areas.

New Orleans Short Term Rental Taxes

Short-term rentals in New Orleans are subject to tax. Vacation rental hosts are required to collect applicable taxes from guests and remit them to the proper authorities. These taxes help fund city services and infrastructure, ensuring that the city remains a great place to live and visit.

Tax Rates

The New Orleans City Council has approved a new 6.75% tax on short-term rentals within the city, effective September 1, 2020.

New Orleans Wide Short Term Rental Rules

New Orleans has strict limits on short-term rentals in residential areas. After July 1, 2023, Residential Short-Term Rentals (RSTRs) will no longer be permitted. Instead, hosts must apply for a Non-Commercial Short-Term Rental (NSTR) license. This change in regulations aims to reduce the impact of short-term rentals on the city's housing market and preserve the character of its historic neighborhoods.

New Orleans has zoning restrictions that limit the number of short-term rentals per square block. There can only be up to three short-term rental properties per square block (made up of four streets).

Enforcement of STR Rules in New Orleans

The enforcement of short-term rental regulations in New Orleans is carried out by the Short Term Rental Administration (STR Office), which is part of the Department of Safety and Permits. The city plans to first target properties with noise or trash complaints, sending inspectors to the properties and collecting information from neighbors before setting a hearing date.

This approach allows the city to address issues that are most concerning to residents while maintaining a balance between enforcement and the rights of short-term rental hosts.

Airbnb Friendly and Enforcement in New Orleans

New Orleans has been experiencing a legal battle over short-term rental regulations, with a federal ruling allowing the enforcement of the City Council's latest rewrite of city regulations. Despite this, some hosts continue to operate without a license, citing limbo due to the ongoing legal challenges. The city's stance on short-term rentals is a delicate balance between ensuring compliance with regulations and maintaining the rights of hosts and residents.

How to Start a Short Term Rental Business in New Orleans

• To start a short-term rental business in New Orleans, follow these steps:
• Research and understand the city's short-term rental regulations.
• Obtain the necessary permits and licenses from the city.
• Provide an affidavit from the landlord with written permission.
• Collect applicable taxes from guests and remit them to the proper authorities.
• Ensure compliance with the city's regulations, including noise, sanitation, and security plans.
• Apply for a Non-Commercial Short-Term Rental (NSTR) license if you are operating in a non-residential zone.

Contact Information for Short Term Rental Regulations and Zoning in New Orleans

For information on short-term rental regulations and zoning in New Orleans, contact the Short Term Rental Administration (STR Office) at the Department of Safety and Permits. Their contact information is as follows:

• Phone: (504) 658-6100
• Email: str@nola.gov

What do Airbnb hosts in New Orleans on Reddit and Bigger Pockets think about local regulations?

Airbnb hosts in New Orleans have shared their experiences and opinions on Reddit and Bigger Pockets. Some hosts have reported challenges with enforcement and the legal landscape, while others have expressed frustration with the ongoing legal battles. Despite these challenges, many hosts continue to operate their short-term rentals, contributing to the city's vibrant tourism industry and providing valuable accommodations for visitors.

Reddit

Hosts on Reddit have discussed the challenges of operating short-term rentals in New Orleans, including the legal landscape and enforcement. Some hosts have reported issues with the lottery system and zoning restrictions, while others have highlighted the benefits of hosting in the city.

Bigger Pockets

On Bigger Pockets, hosts have shared insights into the profitability of short-term rentals in New Orleans and the importance of understanding and complying with local regulations. Some hosts have emphasized the need for clear communication with neighbors and guests to ensure a positive experience for all parties involved.

Challenges and Frustrations

Some hosts on Reddit and Bigger Pockets have expressed frustration with the ongoing legal battles and the city's enforcement of short-term rental regulations. Some hosts have reported difficulties in obtaining permits and licenses, while others have criticized the lottery system for being unfair and limiting the number of short-term rentals in the city.

Benefits of Hosting in New Orleans

Despite the challenges, many hosts on Reddit and Bigger Pockets have highlighted the benefits of hosting in New Orleans. The city's vibrant tourism industry, rich culture, and unique neighborhoods make it an attractive destination for travelers, and short-term rentals provide valuable accommodations for visitors.

Clear Communication with Neighbors and Guests

Some hosts on Bigger Pockets have emphasized the need for clear communication with neighbors and guests to ensure a positive experience for all parties involved. By establishing clear expectations and addressing any concerns or issues promptly, hosts can build positive relationships with their neighbors and guests and help maintain the character and integrity of their neighborhoods.

Legal and Regulatory Compliance

Despite the challenges and frustrations, it is important for short-term rental hosts in New Orleans to comply with local regulations and obtain the necessary permits and licenses. By doing so, hosts can help ensure a fair and sustainable short-term rental market in the city and contribute to the well-being of their communities.

Legal Challenges and Ongoing Battles

The legal landscape for short-term rentals in New Orleans has been fraught with challenges and ongoing battles. In 2018, a federal judge issued a preliminary injunction blocking the city from enforcing its short-term rental regulations, citing constitutional concerns. However, in 2020, a federal appeals court lifted the injunction, allowing the city to enforce its regulations once again.

Impact on the Housing Market

The city's strict limits on short-term rentals in residential areas aim to reduce the impact of short-term rentals on the city's housing market and preserve the character of its historic neighborhoods. By limiting the number of short-term rentals per square block, the city hopes to maintain a balance between the needs of residents and the demands of the tourism industry.

Enforcement and Compliance

The enforcement of short-term rental regulations in New Orleans is carried out by the Short Term Rental Administration (STR Office), which is part of the Department of Safety and Permits. The city plans to first target properties with noise or trash complaints, sending inspectors to the properties and collecting information from neighbors before setting a hearing date. This approach allows the city to address issues that are most concerning to residents while maintaining a balance between enforcement and the rights of short-term rental hosts.

Clear Communication and Positive Relationships

Clear communication with neighbors and guests is essential for ensuring a positive experience for all parties involved in short-term rentals in New Orleans. By establishing clear expectations and addressing any concerns or issues promptly, hosts can build positive relationships with their neighbors and guests and help maintain the character and integrity of their neighborhoods.

Legal and Regulatory Compliance

Despite the challenges and frustrations, it is important for short-term rental hosts in New Orleans to comply with local regulations and obtain the necessary permits and licenses. By doing so, hosts can help ensure a fair and sustainable short-term rental market in the city and contribute to the well-being of their communities.ShareRewrite