New Orleans is renowned for its vibrant culture, historic architecture, and lively festivals, making it a top destination for travelers. For property owners, this popularity presents a lucrative opportunity through short-term rentals (STRs). However, operating an STR in the Crescent City requires a thorough understanding of the city’s regulations to ensure compliance and avoid penalties. This guide provides an overview of New Orleans short-term rental laws, focusing on licensing, taxes, zoning, and recent legislative changes.
Understanding New Orleans Short-Term Rental Laws
What Is a Short-Term Rental?
In New Orleans, a short-term rental is defined as the rental of a dwelling unit or any part thereof for fewer than 30 consecutive days in exchange for money or other compensation. These rentals are subject to specific regulations outlined in the city’s Comprehensive Zoning Ordinance (CZO) and Municipal Code of New Orleans (CCNO).
Licensing Requirements
To legally operate an STR in New Orleans, property owners must obtain a permit from the city’s Short Term Rental Administration. The type of permit depends on the nature of the rental:
- Non-Commercial Short-Term Rental (NSTR): This permit is for property owners who reside at the property and rent out part of it. Applicants must complete a training course and submit a floor plan, evacuation plan, noise abatement plan, and sanitation plan. A noise monitoring device is required as part of the noise abatement plan .
- Commercial Short-Term Rental (CSTR): This permit is for property owners who do not reside at the property. As of June 8, 2023, the city no longer accepts new applications for CSTRs. Existing CSTRs can renew their permits annually .
Zoning and Location Restrictions
New Orleans enforces strict zoning regulations for STRs:
- Permit Limitations: Only one STR permit is allowed per city square. If multiple applications are received for the same square, a lottery system determines who receives the permit.
- Location Restrictions: STRs are prohibited in the French Quarter and certain sections of the Historic Garden District.
- Operator Residency: Operators must live on the same lot as the STR unit. This requirement aims to ensure that operators can promptly address any issues that arise during guest stays.
Tax Obligations
STR operators in New Orleans are subject to various taxes:
- State Sales Tax: Louisiana imposes a state sales tax on rental income.
- City Sales Tax: The city levies its own sales tax on rental income.
- Occupancy Taxes: These include the short-term rental occupancy fee, occupancy privilege tax, and short-term rental equalization occupancy tax .
Platforms like Airbnb and Vrbo collect city taxes on behalf of hosts. However, hosts must still register and file lodging tax returns with state tax authorities, even if taxes are collected on their behalf.
Recent Legislative Changes
In recent years, New Orleans has implemented several changes to its STR regulations:
- Elimination of Exemptions: In March 2025, the City Council approved a measure removing all exceptions to STR rules. Previously, operators could apply for special exemptions to operate additional STRs on the same block. The new law eliminates this option.
- Operator Residency Requirement: As of March 2023, operators must reside on the same lot as the STR unit. This change aims to ensure that operators can promptly address any issues that arise during guest stays.
- Permit Limitations: The city limits STR permits to one per city square. If multiple applications are received for the same square, a lottery system determines who receives the permit.
- Platform Verification: Starting in June 2025, STR platforms like Airbnb and Vrbo will be required to verify that listings in New Orleans have city-issued STR permits before booking can occur.
Compliance Tips for STR Operators
To ensure compliance with New Orleans STR laws:
- Obtain the Appropriate Permit: Determine whether you need an NSTR or CSTR permit and complete the necessary application process.
- Adhere to Zoning Regulations: Ensure that your property is located in an area where STRs are permitted and that you comply with the one-per-square rule.
- Register for Taxes: Register with the Louisiana Department of Revenue and the City of New Orleans to collect and remit the appropriate taxes.
- Maintain Proper Documentation: Keep records of all permits, tax registrations, and communications with guests and authorities.
- Stay Informed: Regularly check for updates to STR regulations and ensure that your operations remain in compliance.
Operating a short-term rental in New Orleans offers significant opportunities but requires strict adherence to local laws and regulations. By understanding the licensing requirements, zoning restrictions, tax obligations, and recent legislative changes, you can ensure that your STR business remains compliant and successful. Always consult with legal professionals or the city’s Short Term Rental Administration for guidance specific to your situation. For more information and to apply for permits, visit the City of New Orleans Short Term Rental Administration website.
