Big Changes to Short-Term Rental Rules Coming Dec. 1

NEW ORLEANS – Anyone in the city who rents a property on Airbnb, VRBO or other short-term rental platforms can expect big changes starting Dec. 1 as a result of laws passed by the New Orleans City Council in August.

The new rules going into effect next week will:

  • Limit short-term rentals in residential areas to owner-occupied properties
  • Restrict the number of rentals allowed in commercial buildings
  • Ban short-term rentals in most of the French Quarter and the entire Garden District

The law is a response to concerns that the surge of short-term rentals in some areas has decreased affordable housing options, raised property taxes and hurt the character of the city’s historic neighborhoods. 

Commercial short-term rental operators have likely been planning for this change for months, but if you’re a New Orleanians who rents out an apartment or extra room in your house, you may not have been paying as much attention to the developments. 

The most important thing you need to know is that you should apply for your license from the Short Term Rental Administration before Sunday, Dec. 1! You can apply here. The offices are bogged down with applications but it will benefit you to at least have an application in the system before the new rules take effect. 

After Dec. 1, the permits and costs associated with them will change. For example, if you rent an apartment in your house under the current rules you pay $200 per year for a license and an additional $1 fee for every night the apartment is rented. When the new rules kick in, you will pay $500 for the license and a $5 fee per night. If you are renting a private room within your house instead of an apartment with its own entrance, your license will only increase to $250 per year.

Another change under the new rules is that homeowners will have to have an operators permit as well as an owners permit but there won’t be an additional cost. 

Don’t forget that New Orleans voters just approved a new 6.75 percent tax on all short-term rental operations. The date when these will be begin has not been announced but this will be added to the existing STR taxes. 

If you’re planning to register for a license, gather your information first. You will need to provide a completed application form, a list of the short-term rental platforms you use, an evacuation plan for your rental unit, a site plan showing required parking and a floor plan.

Check back with BizNewOrleans.com because we are in touch with officials at the Short Term Rental Administration and will be publishing more details as they become available.

 

Categories: Morning Biz, Today’s Business News

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