After months of intense discussion, the New Orleans City Council recently passed two new laws that regulate short-term rentals (STRs) in the city. The regulations limit the number of STRs per square block in residential areas and impose stricter penalties on those who violate the rules. Helena Moreno, At-Large councilor, emphasized the importance of maintaining the requirement that only individuals can have a property license. If you're an investor looking to capitalize on short-term rental opportunities in New Orleans, it's essential to stay up to date on the latest regulations.
The new rules limit the amount of STRs per square block to three, which is defined as four streets that form a square. This is an important factor to consider when searching for investment properties, as it narrows your options in certain areas. With Mardi Gras just around the corner, demand for STRs in New Orleans will skyrocket in the coming weeks. Debates over residential rules have been especially personal, pitting landlords concerned about keeping their homes against tenants who are struggling to pay rent, and others from across the wealth spectrum who fear that unchecked tourist accommodation is destroying neighborhoods in New Orleans. The Short-term Rentals Administration (STR Office), which is part of the Department of Security and Permits (Department), regulates STRs in the parish of Orleans (city). In a historic vote that could shape neighborhoods in New Orleans for years to come, the City Council adopted new limits aimed at curbing short-term rents in residential neighborhoods. When the new rules take effect in July, owners of short-term rentals in the city will be limited to licensing one property per block and the operator must live on the property, either the landlord or the tenant authorized to reside there.
Any STR that violates these regulations after this date can face penalties or fines.
What Investors Need to Know About New Orleans' Short-Term Rental Regulations
As an investor looking to capitalize on short-term rental opportunities in New Orleans, it's essential to understand how these new regulations may affect your investment plans. With limited options per square block and stricter penalties for violations, it's important to stay informed and make sure you're following all applicable laws. The most important thing to remember is that you can only license one property per block. This means that you'll need to be strategic when searching for investment properties, as it narrows your options in certain areas. Additionally, you must ensure that you or your tenant lives on the property. It's also important to note that any STR that violates these regulations after July can face penalties or fines.This means that it's essential to stay up to date on all applicable laws and regulations so you don't risk facing any legal repercussions.
