Understanding New Orleans' Proposed Commercial Short-Term Rental Ban: A Deep Dive

Hello, fellow short-term rental (STR) owners,

As a reader of this blog, you've likely heard about the City Council's new proposal.  It suggests implementing a one-year ban on new licenses for commercial short-term rentals (STRs) and hostels. Let's delve into the details of this latest development in the New Orleans STR landscape, based on the latest reporting from NOLA.com.

**The Proposed Short-Term Rental Ban in New Orleans**

The City Council's proposed measure is more comprehensive than previous restrictions we've seen in New Orleans' short-term rental industry. It targets new STRs, hostels, new hotels, and timeshares in commercial districts. An amendment may exclude hotels from the ban, but timeshares would still face restrictions.

A significant part of the concern surrounding this proposed ban focuses on large apartment complexes being converted into STRs. The City Council hopes to prevent this trend with their new measure.

For those operating existing commercial STRs in New Orleans, stay alert. According to NOLA.com, around 1,200 existing permits may not be eligible for annual renewal under this new rule. (However, we would strenuously argue that existing permits up for renewal are not “new” under the ordinance and therefore should be allowed.)

**Reactions to the Proposed New Orleans STR Ban**

As expected, the proposal has stirred a mixed response. Housing advocates in New Orleans have welcomed it, citing the need to curtail out-of-town speculators snapping up properties for commercial STR use.

On the other hand, commercial STR operators and investors have raised concerns. As quoted in a recent NOLA.com article, we must consider the importance of a predictable regulatory environment for our New Orleans short-term rental community:

 “The City Council can debate reasonable restrictions, but a wholesale ban through an IZD does not give a lot of time for public comment,” said Christopher Stow-Serge, a lawyer who represents commercial short-term rental operators. “Providing certainty, particularly when small business owners are making investments in these properties to fix them up, will go a long way to fairness.”

- NOLA.com, "New ban proposed for New Orleans AirBnbs, hostels in city's commercial districts; see details" (June 7, 2023)

Many small business owners make significant investments in these properties, often revitalizing neighborhoods and offering quality accommodation for visitors.

**What Next for the New Orleans Short-Term Rental Community?**

This proposed short-term rental ban will be up for debate and vote at the City Council meeting tomorrow, on Thursday, June 8th. As we navigate these changes, it's essential for us, as a united New Orleans STR community, to stay informed and engaged.

As hosts and small business owners, we play an essential role in New Orleans' vibrant community and economy, and we need to ensure that we continue to do so.

For a more detailed discussion of the proposal, refer to the NOLA.com article or today's paper.

As always, if you have specific legal questions for a short term rental attorney, or concerns related to your properties or planned investments in the New Orleans short-term rental market, my firm is here to help.

Stay tuned for more updates on the New Orleans short-term rental scene.

Best,

Christopher Stow-Serge