New Orleans short term rental laws impose a 90 day rental limit on units that are in residential areas and aren’t owner-occupied. The city calls these Type T or “Temporary” licenses.
But what happens if you rent for 30 days or more?
Under the law, this is a traditional, long-term rental, and shouldn’t count against the 90 day limit.
The city’s zoning ordinance defines a short term rental as “rental of all or any portion thereof of a residential dwelling unit for dwelling, lodging or sleeping purposes to one party with duration of occupancy of less than thirty (30) consecutive days.” Thus, a rental of 30 days or more isn’t short term, and shouldn’t count against the 90 day limit.
That said, here’s a couple of other issues you should be aware of:
- Income from month-long and short-term rentals may be taxed differently. Track those incomes separately, and discuss it with your tax advisor before you file income taxes.
- If you’re using a platform that collects and remits sales and uses tax (such as Airbnb), determine whether or not the platforms waives taxes for these longer rentals. You may be charging your guests more than you’re supposed to if taxes are collected on these long-term rentals. Again, our law firm does not advise on taxes, so please consult with a tax professional. (We’re happy to make a referral!)
- Have a lease agreement ready to go, just in case. If the city decides to issue a fine because you exceeded the 90 day limit, you may need to show that not all of those nights were short-term rentals. A signed lease can provide evidence of this.