What is the New Orleans Short-Term Rental Ordinance?
The New Orleans Short-Term Rental (STR) Ordinance is the formal collection of city laws designed to regulate properties rented for periods of less than 30 days. These regulations establish different permit types based on zoning and residency, set limits on the number and density of rentals, and enforce health and safety standards.
The ordinance's primary purpose is to balance the economic opportunities of tourism with the need to preserve residential neighborhood character and maintain long-term housing availability for local residents.
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How it works
To operate legally, a host must first determine their property's eligibility based on its zoning district and whether it qualifies for a homestead exemption. The host then applies for a specific type of STR permit (e.g., Residential or Commercial) through the city's Department of Safety and Permits, a process that requires submitting documentation, paying fees, and undergoing property inspections.
Once issued, the STR permit number must be prominently displayed on all online advertisements and listings. Operators are also responsible for collecting and remitting all applicable hotel, motel, and miscellaneous occupancy taxes to the city and state.
Why it matters
Compliance with the New Orleans Short-Term Rental Ordinance is a legal necessity for all hosts in the city. Operating without the proper permits or in violation of the rules can result in substantial daily fines, permit revocation, and other legal penalties.
These regulations directly influence a host's business strategy, affecting which properties are eligible to operate as rentals, how many guests can be accommodated, and overall profitability. Adherence to the ordinance is essential for running a sustainable and lawful vacation rental business in New Orleans.
Examples
- A homeowner with a valid homestead exemption in an eligible residential zone secures a Residential STR (RSTR) permit to rent out a spare bedroom in her home.
- An investor operating in a designated commercial district obtains a Commercial STR (CSTR) permit, which allows them to rent the entire non-owner-occupied unit to travelers year-round.
- A property manager receives a notice of violation and a fine for advertising a downtown condo on Vrbo without including the mandatory City of New Orleans STR permit number.
- During the annual license renewal process, a host ensures their property has passed its fire safety inspection and has paid all outstanding lodging and sales taxes to remain in compliance.
Frequently asked questions
What are the main types of short-term rental permits in New Orleans?+
Are short-term rentals allowed in the French Quarter?+
What are the penalties for not complying with the New Orleans STR Ordinance?+
Besides an STR permit, what other licenses are required in New Orleans?+
Related terms
STR Permit
An STR permit is an official license issued by a local government authority that legally allows a property to be operated as a short-term rental.
Business License
A business license for a vacation rental is an official permit issued by a government authority, granting the holder the legal right to operate a short-term…
Zoning Laws
Zoning laws are municipal or county regulations that dictate how property in specific geographic zones can be used, which directly impacts the legality and…
Occupancy Tax
Occupancy tax is a tax levied on the rental of short-term accommodations, which hosts are legally required to collect from guests and remit to local or state…
