Short Term Rental updates by Ali Cherenek

Short Term Rental Guidelines are changing as of Sunday, December 1st and we have organized helpful information from the City of New Orleans website below to guide you through the process. In addition, to some great updates there are several valuable cheat sheets worth downloading relating to terminology, parking, and zoning. As of yesterday, the new applications are available for your review online and we are eagerly awaiting the release of the new STR handbook which should be any day. 

It’s important to note any current license issued before December 1st will remain valid until they expire. Current licenses will be allowed to honor bookings made before their license expires. Applications for “Old” license types, received before November 30th, 2019 will be reviewed for issuance under the “Old” regulations. Applications for “New” Licenses types will be accepted starting at 12:01 AM of December 1st. Applications for “New” license types can be filed online at onestopapp.nola.gov or dropped off at the One Stop Shop Office on the 7th floor of City Hall. For general public questions, regarding the license-issuing process, you may email str@nola.gov, call (504) 658-7144, or stop bye in person at the One Stop Shop on the 7th floor of City Hall. 

The new Short-Term Rental (STR) regulations, will create several new categories of licenses. These new licenses will be for STR Owners, STR Operators, and STR Platforms. The new STR Owner licenses are divided into two categories, Residential STR (RSTR) and Commercial STR (CSTR). There is only one type of CSTR license but there are three types of RSTR license. All three types of RSTR license require a Homestead Exemption. This means that only property owners who hold a Homestead Exemption within the building they wish to rent will be able to get an RSTR license. Whether an Owner needs to get an RSTR or a CSTR license depends on the zoning district designation for the property they wish to short-term rent. Properties in commercial or mixed-use zoning districts are eligible for a CSTR license. Properties in residential or mixed-use zoning districts are eligible to have an RSTR license. Which type of RSTR license an Owner needs to get depends on the building type designation for the property they wish to short-term rent. Building type designations include single family homes, duplexes, multi-unit buildings of 4 units or fewer, and multi-unit buildings of 4 units or more. 

The new Short-Term Rental (STR) regulations, will create an Operator license requirement. The Operator license has been created to regulate the operation and management of STRs and to ensure that all STRs are safe, compliant, and supervised. An Operator license is a license that allows an individual to operate or manage one or more STRs. Every STR unit in Orleans Parish must have both an Owner license and an Operator license associated with it. Owners who hold an RSTR-Partial license can obtain an Operator license to manage their own RSTR-Partial unit at no additional cost, but all other Owner license types require an Operator license at a set cost. STR Owners and Operators are equally responsible for ensuring that an STR is in compliance. 

The commercial CSTR license type is available only to buildings located in those commercial and/or mixed-use zones approved for CSTR by the Comprehensive Zoning Ordinance (CZO). Within those buildings, no more than one unit (1) or twenty-five percent (25%) of the total number of units can receive a CSTR license, whichever is greater (some exceptions available). CSTR-eligible properties also face some additional restrictions which do not apply to RSTR-eligible properties – a CSTR license cannot be issued to units on the first floor of certain multi-story structures (exceptions available), and a CSTR license applicant must provide noise, security, operation, and sanitation plans at the time of application.

Also, in addition to each CSTR unit having a licensed STR Operator, any structure which contains ten (10) or more Dwelling units used as STR must also have a licensed STR Operator designated for the property as a whole (this property STR Operator can be the same person as any of the individual units’ STR Operators).

Finally, new STR regulations, will alter the current parking requirements. Each type of license, depending on what zoning district the property is in, will have a requirement to provide off-streetcar and bicycle parking based on the number of STR units and/or guest bedrooms within the property. Determining required parking can be a complex and lengthy process. Property-specific questions should be directed to the Zoning Department through their webpage HERE.

 

Important Cheat Sheets

Glossary of Short-Term Rental-related terms HERE
New License types Guide, click HERE
Owner and Operator Responsibilities, please click HERE
Guide to the STR parking requirements, please click HERE
Where Are Short Term Rentals Allowed, please click HERE
Policy Regarding Complete STR Applications 
COMMERCIAL STR (CSTR) LICENSE APPLICATION FORM 
COMMERCIAL STR (CSTR) REQUIRED PLANS INSTRUCTIONS AND FORM 
RESIDENTIAL STR (RSTR) LICENSE APPLICATION FORM 
STR OPERATOR (OSTR) LICENSE APPLICATION FORM 
STR PLATFORM (PSTR) LICENSE APPLICATION FORM