Written by: Sanjin Hadziomerovic
Comprehensive FAQs for Short-Term Rental (STR) Regulations in New Orleans, LA
Investing in short-term rental (STR) properties requires an in-depth understanding of local regulations. Below is a comprehensive list of frequently asked questions (FAQs) for STR operators and investors to help you navigate the rules in New Orleans, LA and stay compliant while maximizing profitability.
1. What is considered a short-term rental in New Orleans, LA?
STRs are defined in the Comprehensive Zoning Ordinance (CZO) as “the use and enjoyment of a Dwelling Unit or any part thereof, by guests for a period of less than thirty consecutive days, in exchange for money, commodities, fruits, services, or other performances.” Any stay of less than 30 consecutive days requires an STR permit. Rentals longer than 30 days (60 days in the Vieux Carré) are considered long-term and do not require an STR permit (Overview of Short Term Rentals in New Orleans)
2. Do I need a permit to operate a short-term rental in New Orleans, LA?
There are two permit categories administered by the Department of Safety & Permits:
- Non-Commercial Short Term Rental (NSTR): Available to owner-occupied properties where no more than two units are rented, and no structural changes or commercial activity occurs. NSTR licenses must be renewed annually and are subject to a lottery in oversubscribed areas.
- Commercial Short Term Rental (CSTR): Historically available to investor-owned buildings, subject to zoning approval, floorplan review, evacuation plans, and noise, sanitation, and security operation plans. New CSTR applications have been closed since June 8, 2023 under CZO 19.4.A.20; only existing CSTR licenses may renew (STR Administration Home)
All STRs must hold a current permit (NSTR or, if pre-June 2023, CSTR) before listing.
3. What are the zoning laws for STRs in New Orleans, LA?
STRs must comply with both the CZO and the Municipal Code. Key zoning principles include:
- Legal Dwelling Unit: STRs must take place in a lawful Dwelling Unit, which the CZO defines as “a room, or group of rooms, providing complete, independent living facilities, including permanent provisions for living, sleeping, eating, cooking and sanitation for one or more persons.”
- Historic District Considerations: Certain historic neighborhoods (e.g., the Vieux Carré) have unique rules; in the Vieux Carré, rentals of fewer than 60 days were initially prohibited until 2017 but now require specific CZO compliance.
- CSTR-Specific Zoning: CSTRs could only operate in zoning districts approved under CZO 19.4.A.20; no new CSTRs are permitted after June 8, 2023.
- Owner-Occupied NSTR: Allowed in any residential zoning district so long as the permit holder resides on site and does not create new unit separations.
Operators should verify their property’s zoning designation against the CZO and obtain any necessary Zoning Interpretation Memos before applying for an STR permit (Overview of Short Term Rentals in New Orleans)
4. Are there occupancy limits for short-term rentals in New Orleans, LA?
Maximum occupancy is not explicitly capped in the STR ordinance; however, every STR permit application requires a floorplan and evacuation plan review to ensure the unit meets building and fire-safety codes for the intended number of guests. Best practice is to adhere to local fire code occupancy limits—typically based on square footage and means of egress—and to specify the maximum number of guests on your permit.
5. What taxes are short-term rental hosts required to pay in New Orleans, LA?
STR operators must collect and remit applicable state and local lodging taxes:
- State Sales Tax and State Hotel Occupancy Tax: Collected through the Louisiana Department of Revenue.
- City Hotel Occupancy and Sales Tax: Administered by the City of New Orleans Revenue Department.
- Parish Tourist Tax: As required by Orleans Parish regulations.
Platforms like Airbnb or VRBO do not remit STR taxes on behalf of hosts; it is the operator’s responsibility to register with the Louisiana Department of Revenue and the City’s Revenue Department to properly collect and report all taxes due.
6. What are the safety and health requirements for STR properties in New Orleans, LA?
Permit applications must include:
- Floorplan and Evacuation Plan: Showing all exits, smoke detectors, fire extinguishers, and egress routes.
- Noise Abatement Plan: Procedures to mitigate noise impacts on the neighborhood.
- Sanitation Plan: Detailing trash handling, pest control, and housekeeping.
- Security Plan: Including emergency contact information and protocols for guest behavior.
No separate routine health inspection is required, but STR properties must comply with all applicable building, fire prevention, plumbing, mechanical, and health codes enforced by the Department of Safety & Permits.