The new vacation rental regulations passed by the New Orleans City Council allows residential property owners who don’t live on their property all year round, to rent them out on Airbnb, VRBO, and similar platforms.
In local terms, this is the “whole home rental” that was a flash point in negotiations between residents and vacation rental hosts. The city is calling this a “Temporary” or “Type T” permit, and the law limits those rentals to “a maximum of ninety (90) permitted days per year.”
New details available on the City’s website
The law itself doesn’t specify whether property owners will need one license for the entire year, or whether they’ll need a license for each separate rental period.
Practically, that means that the executive branch of the government, which is responsible for implementation and enforcement of the law, can interpret this ambiguity however it wants.
Until now, the implementation of that provision was unclear. But a brochure found on the City’s website offers some guidance.
The brochure breaks down the types of licenses, and answers several questions about each type of license.
What’s new for Airbnb hosts?
“Temporary” Short Term Rental licenses allow a maximum of 90-rental nights per license year. Temporary Short Term Rental licenses may be issued for separate periods or for a continuous 90-day duration. If an applicant chooses to seek separate periods, a new license application must be filed and approved.
Whoa. That’s huge, and creates an unexpected hurdle if you’re a short term rental host who wants a Type T license. The license fee is $50 if you have a homestead exemption, and $150 if you don’t have a homestead exemption.
So let’s assume that you own a property and want to rent it out as a year-round, whole-home rental. You’ll only be able to rent it 90 nights per year, and you’ll need to apply for a Type T license.
The city issues a Type T license for either one 90 day period, or by identifying specific days. So if you know the dates you’ll be out of town for the year, you may apply for a license for those specific dates. If you’re unsure of when you’ll want to rent, you may apply for a license for consecutive 90 day periods, and rent the properties out as they come to you.
You’re still limited to the 90 nights per year, but now you’ll need to apply for a license every 90 days, or 4 times a year. That means your license fee isn’t just $150 per year, but $600.
We’re still working on determining how all of this will be implemented, but be sure to join our email list to stay tuned.