Earlier today, the city council released a version of the short term rental ordinance that will allow AirBNB to operate legally in New Orleans.
Whole Home Rentals
- These are permitted in “any zoning district where dwelling units are permitted.”
- Limited to a maximum of 90 days per year.
- These may be operated by renters, but the renter must show the property owner’s consent, and must provide a lease.
- Occupancy is limited to 2 guests per bedroom, or 10 guests, whichever is less.
- No requirement for owner occupancy, and no requirement that the owner be present.
If you want to rent out a room in your house
To rent a room in your house, you’ll need a Type A (accessory) license. Here’s a few of the details:
- Limit of 3 bedrooms, and 2 guests per bedroom, or 6 guests total. The owner-occupant must have a bedroom for themselves.
- This requires a homestead exemption.
- If you own a duplex, you may rent out the other side, but you’re limited to 2 guests per bedroom, or 6 total.
Licensing and Permitting Fees
- Accessory Short Term Rentals – $200.00 (Type A)
- Temporary Short Term Rentals – $150.00. (Type T, Whole Home Rental).
- Commercial Short Term Rentals – $500.00 (Type C).
Penalties for not failing to register include:
- Revocation of a Short Term Rental License Permit
- Daily fines
- Property liens
- The discontinuance of electrical service.
The Commercial License will be a permitted use in zoning districts M-MU, HMC–1, HMC–2, HM-MU, HU-B1, HU-MU. It is also permitted in S-B1, S-B2, S-LB1, S-LB2, S-LC, S-LP, S-LM, which are mostly in the “suburbs” north of I–610, and on the Westbank towards Old Aurora, English Turn, and Brechtel. C–1, C–2, C–3, MU–1, MU–2, EC, MC, MS, and LS. CBD1–7. It will be a conditional use in HU-B1A. These are, mostly, around large commercial corridors. These are scattered throughout the city, but you can find them here: http://property.nola.gov/, then selecting “Layers,” then checking “Zoning.”
A few additional requirements
- Short term rentals may not operate outdoors, in an accessory structure, or in a recreational vehicle.
- Each STR must have an in-town property manager if the owner or operator is out of town during the time of the rental.
- The city has also inserted a few subjective requirements, which practically gives the city authority to shut them down when they’re being a nuisance. STRs cannot:
- Host commercial or social events.
- “Adversely affect the residential character of the neighborhood.”
- “Generate noise, vibration, glare, odors, or other effects that unreasonably interfere with any person’s enjoyment of his or her residence.”
This is new, as far as I’m aware. The Commercial (Type C) STR will require 1 space per 2 guestrooms, and 1 “bicycle spaces” per 5 rooms. 25% must be “long term” bicycle spaces.
A few other Interesting Points
- The City is creating the “City of New Orleans Neighborhood Housing Improvement Fund” and will deposit $1 per night of rental into the fund.
- Whole-Home (Type T) and Owner-Occupied (Type A) short term rentals are banned in the French Quarter. This amendment was apparently added by Councilmember Stacy Head.
The City of New Orleans and AirBNB are Working Together
The law requires that “Short Term Rental Hosting Platforms” to provide monthly reports that indicate the details below. A “Hosting Platform” is basically any website, Craigslist or VRBO included. The law states that the city will subpoena information from the platform if they don’t comply, but doesn’t have penalties for the lack of compliance. This information was also added via an amendment by Councilmember Head.
- The total number of short term rentals listed on the platform
- the total number of nights that each listing on the platform was rented to guests during
- a cumulative tally to date of the number of nights that each listing on the platform is booked for rental during the remaining months of the applicable calendar year;
- a notation indicating the permit type for each listing; and
- the total amount of tax collected by the platform and remitted to the city.
The City and AirBNB will sign a Cooperative Endeavor Agreement which will go into effect on January 1, 2017, is for a one year term, and may be renewed for 4 additional one-year terms. Both parties the right to terminate on 30 days notice.
Vacation Rentals By Owner (VRBO), which operates as part of Home Away, Inc., is not mentioned, so apparently only AirBNB has agreed to report on people using that platform.
Questions? Send us an email at email@example.com and we’ll get back to you.