How to Secure Your New Orleans Short-Term Rental Permit for Airbnb, Post-Court Ruling
Q: How can I get a short term rental permit in New Orleans?
A: Until recently, this was a very complicated question. In 2023, the New Orleans City Council implemented new rules about non-commercial short term rentals (NSTRs). However, shortly thereafter, a federal lawsuit in the Eastern District of Louisiana halted the permit process. Since late summer 2023, a court-ordered stay has been in place, essentially freezing the issuance of all NSTR permits in the city of New Orleans. On Wednesday, February 27, 2024, the stay was lifted when Judge Ivan Lemelle issued his ruling, which largely preserved the permitting rules put in place by the City Council. You can read more about the stay here.
Q: Can you tell me more about the ruling?
A: The 55 page ruling discusses each element of the new NSTR laws and finds the vast majority to be constitutional. There is a small change that allows trust beneficiaries and usufructories to obtain an NSTR permit. If you believe this may apply to you, please contact our office to discuss your particular situation. There have been a variety of news articles covering and summarizing the opinion, you can read the Times Picayune’s coverage here.
Q: So, now that the Judge has ruled, can I actually apply for a NSTR permit?
A: Yes. The City has indicated that both the operator (OSTR) and non-commercial permit (NSTR) applications will be reopened. The OSTR permit application is open now. The NSTR application, for new applicants, will open on June 1, 2024.
Q: What about the lottery that was held last summer?
A: If you were included in the August 14, 2023, lottery it appears that those results are still valid and will be honored. That means that, if you won the lottery for your square block, you will have the opportunity to pay and be issued a permit.
Q: What is a square block?
A: Check out the example illustration on our blog, here.
Q: Can you explain the lottery process?
A: Each square block is assigned a five digit lottery ID number and every individual applicant in the lottery is given a reference code and a corresponding bingo ball number. During the lottery, the square block lottery ID number is announced, the reference codes and corresponding ball numbers are displayed, and the balls are tossed in the cage. Balls are selected in order, with a first place, second place, third place and so on and announced. The lottery is only held for square blocks where there are multiple applicants trying to get a NSTR permit.
Q: If I won the lottery for my block, or didn’t have any competition for a permit, what happens next?
A: The City “will be approving Round 1 applications by March 8th” according to a recent email. In theory, this means that by March 8, 2024, you will receive an email from noreply@nola.gov approving your license and telling you how to pay for your permit. You will only have 5 calendar days from receiving the approval email to pay for your permit. If you believe that you won the lottery for your block, or did not have any competition in your block, but do not receive an email from the City, you should quickly take action to protect your right to a permit.
Q: What happens if the first place lottery winner doesn’t pay within 5 days?
A: If the City does not receive payment within the 5 day window, the next person in line via the lottery will have the opportunity to claim the permit for that square block. If you receive an email from the City directing you to pay for your NSTR permit, you should pay as soon as possible to avoid losing out on a permit.
Q: If I entered the August 2023 lottery and didn’t win, what are my options?
A: If you entered but were not awarded a permit during the 2023 lottery, the City send you an email or letter officially stating that your application was denied. This letter will probably come after the first place lottery winner pays their permit fees. The next step will be the special exception process, where an exception is given for you to operate a Short Term Rental on sites like Airbnb, despite your square block already having one short term rental or a property licensed as a bed and breakfast. The Stow Firm is representing clients seeking an NSTR exception to the one per square block rule and can assist you with your exception application.
Q: What if I didn’t, or couldn’t, enter last year’s lottery—can I still get a permit?
A: Yes and your opportunity is coming up soon. On June 1, 2024, new NSTR applications will be accepted. After you submit your application, one of three things will happen: 1) you will be denied (either because of problems with your application itself or because your property does not follow the requirements), 2) you will granted a permit (if there are no other applicants in your square block and no NSTR permit has been granted for your square block), or 3) you will be entered into the next lottery to compete for a permit for your square block.
Q: Once you apply for a NSTR permit on June 1, are you automatically entered into the July 1, 2024, lottery?
A: No, you will only be entered into the lottery if the following things are true: your application meets all the requirements; your square block does not currently have a B&B or permitted NSTR on it; and at least one other applicant in your square block also applied during the June 2024 application window and met the application requirements. If you are interested in applying for the upcoming NSTR application cycle, feel free to contact the Stow Firm for assistance in completing your application and learning if there are other already permitted NSTRs or B&Bs in your square block.
Q: Does the court ruling impact non-residential, commercial STRs in New Orleans?
A: No, the court ruling and application process described above only applies to non-commercial, residential rentals. New commercial STR permits are currently frozen in New Orleans, though you may renew an existing CSTR permit. You can read more about this issue on our blog, here.
Q. How much does a citation for an illegal STR listed on Airbnb Cost in New Orleans?
Fines for illegal Airbnb listings and other STR violations are $500 a day, with each day counting as a separate violation.
See New Orleans Ordinance Sec. 26-629(a) ("Any person who violates this article or the Comprehensive Zoning Ordinance shall be subject to a fine of not less than $500.00 for each offense. Each day that such violation exists shall constitute a separate and distinct offense. Multiple violations may relate to the same guest stay, day, action, situation, or event, and may be noticed and heard in a single administrative hearing.")
As of early March 2024, the City is issuing citations for "illegal" STR listings on Airbnb. Property owners who are issued citations are entitled to notice and the opportunity to be heard at a hearing.
Q. Do you offer a service where you will help me with my NSTR permit application?
Yes, you can find more information about that service here.
This post was updated March 25, 2024.