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New Orleans has become a city for short-term rentals, which has caused rising rent and property prices.
With the rise of Airbnb, many landlords and business operators have found the city a perfect spot for accommodating tourists. But this sudden increase in the home-sharing economy paved the way for a city debate.
It has changed the local housing market, neighborhood culture, and the community’s well-being.
It leads the way for the City Councils of New Orleans to implement laws and regulations to govern Airbnb short-term rental properties.
In this article, we will cover the essential regulations of the law and the legal duties of a short-term rental operator.
The New Orleans Airbnb Laws Include the Following Key Regulation
The New Orleans Airbnb laws were enacted on March 23, 2023, and require property owners to get a license permit.
This law applies to short-term rentals such as VRBO or Airbnb to make sure hosts are abiding by the local zoning regulations, safety standards, and other legal requirements,
The following are the regulations of the City of New Orleans:
Limit on Licenses to One Property
One of the New Orleans Airbnb regulations is the limitation for owners to licensing. The host can license one short-term rental per block.
This regulation must be complied especially in residential areas where the council imposes a one-per-square-block.
The leading neighborhoods for short-term rentals are the Treme, Bywater, Central City, and Lower Garden District, which are prohibited for STR.
Under the square-block cap, more short-term rentals are still allowed depending on the zoning areas.
Only a “Natural Person” Can Hold a License
It is also required under the regulation that only a “natural person” can have a property license, meaning cooperation is not allowed to own a license.
They must not be a business entity like an LCC. The host must own a short-term rental license and display the license number on the listing page.
Licensee Live on the Property
To successfully operate an Airbnb short-term rental, the owner must prove they live onsite. They must be the owner or the tenant of the property.
The age requirement of the operators is 18 and above, and they must always be available to solve conflicts in the neighborhoods. For example, a problem that has something to do with disturbing noise must be resolved within an hour.
A host can also be eligible for an RSTR license if the listing is in a residential zone as long as they are the property owner.
They must also have a valid homestead exemption to be eligible. The following are the 3 different types of RSTR permits:
- RSTR-Partial: With this license, you can rent five guest bedrooms and 10 guests in 1 dwelling unit. The estimated fee for getting this license is around $250 and is subject to change. Note that as a host, you can only get 1 RSTR-Partial license.
- RSTR-Small: In this license, you can rent five guest bedrooms and up to 10 dwellings with no more than four units. The fee for getting this license is twice the RSTR-Partial and is approximately around $500.
- RSTR-Large: In this license, you can rent up to 6 guest bedrooms and up to 12 guests in 3 dwelling units with more than 4 dwelling units. The fee for this is also approximately $500.
Reasons for the Implementation of the Regulations
Housing for the Residents
The council wants to eradicate real estate investors selling houses to tourists. Short-term rentals such as Airbnb have significantly impacted housing availability in the community.
Many wealthy investors are entering the short-term rental market and purchasing properties. It can reduce the availability of long-term housing for residents and lead to increased demand, which drives the prices high.
The challenges faced by the residents have made it difficult to find affordable homes.
Short-Term Airbnb Rentals Cater to Partiers
The presence of party-oriented guests in Airbnb short-term rentals can alter the character of a neighborhood, turning previously quiet areas into lively and sometimes chaotic spaces.
The partiers can cause many disturbances in the residential areas, affecting the peaceful atmosphere for everyone.
The quick commercialization of short-term rental properties negatively affects the relationships and the residents’ lifestyle in the community.
Legal Duties of Short-Term Rental Operator Permit Holders
The following are the official requirements for every New Orleans Short-Term Rental owner who complies with the regulations and laws implemented in New Orleans.
Availability as an Operator
Being available as an operator is essential to address any issues inside the rental. You must be accessible and responsive during times of guest occupancy.
It includes being available as well during nights and weekends. It is essential to provide a telephone number that can easily be contacted when guests have needs or concerns.
You must also be responsive to the New Orleans city councils.
Adhering to Dwelling and Occupancy Limits
As mentioned in this article, there are 3 RSTR permits that you must obey. As an operator, you are expected to comply with the occupancy limits of your guests.
You must know the dwelling-unit-per-lot-of-record, guest bedroom, and density limitations. Dwelling-unit-per-lot-of-record regulations typically dictate the maximum number of separate living units allowed on a specific property.
It means that you must not violate and exceed these limits. These restrictions are essential to avoid overcrowding or being inconsistent with zoning regulations.
Guest Records
As an owner, you must take responsibility for maintaining your guest records. You must be transparent and accountable when complying with regulations.
It is essential to keep detailed guest registration records for the sake of actual dates of occupancy. In addition, you will find the total number of guests per party per stay and the rates you charge them for accommodation.
It is also essential for financial and tax purposes, especially transparency in terms of pricing. The information will be used to check compliance with pricing regulations regarding short-term rental properties.
Reporting Criminal Activity
You must report any criminal activity by guests to the New Orleans Police Department. As an operator or owner, you must ensure the safety and security of short-term rental properties.
When you know or suspect any illegal activities are being done, take action to report them. This duty is vital in protecting the surrounding community from crime and unpredicted incidents.
You must abide by the importance of keeping the short-term rental industry safe from criminal activities.
Conclusion
Properties in New Orleans reflect a proactive approach to address the challenges and concerns associated with the growing popularity of short-term rentals in the city.
By implementing this law, the operators or the host will aim to comply with zoning regulations, safety standards, and legal requirements.
At the same time, it promotes transparency in operating short-term rentals in the community. It will also eradicate non-resident operators buying properties for short-term rental properties.
Once you follow the requirements and abide by the regulations, you can enjoy hosting in Airbnb for short-term rentals while keeping the community safe and peaceful.
