Airbnb Regulations in NOLA are not Investor friendly!

7 Replies

Hi all.

Anyone doing Temporary Short Term Rentals via Airbnb in New Orleans? I have two big concerns about the city regulations: 

1. 90-rental nights per license year... how is that actually regulated? Can I get 4 licenses for one property to cover 360 nights?

2. Two guests per bedroom instead of bed.

Are there any ways of getting around these regulations? I find them extremely ridiculous. TIA

@Justin Tortorich Its worse than your brief summary indicates, and the city appears to be enforcing it.  I would suggest that you read the full regulations and anticipate that they city will be enforcing everything.  They hired new staff to enforce these new regulations.  The city is not very short term rental friendly.  The city has already started to fine owners not complying and have actually initiating having the utilities turned off in some cases.

If you want to do short term rentals in NOLA, your best bet is to find property that would qualify for commercial short term rentals, although the zoning required for these is hard to find and likely not in the most desirable short term rental areas.

Yeah New Orleans is a tough market for STR's. I rent out my timeshares all over the US and it's a great way to get a feel for markets I may be looking to invest in the future. NOLA has been hassling me about registration and licensing through the Airbnb platform. I had to let them know that it was a timeshare and all registration fees had already been paid. I have already decided NOLA is definitely not on my list for STR's due to all of the loops that are in place. I don't think there is a way of getting around those regulations besides keeping your STR a secret which may work if you don't have an HOA.

They are most assuredly policing the str's much harder than we expected!! Not sure how they plan to enforce the 90 day rule because I am told airbnb will not release that info to them. The temporary licenses are good for the year, (we are expected to be honorable and cut ourselves off at 90 days) but I bet they find a way to tweek that to stop folks from cheating.

 I can tell you they are cutting zero slack on number of guests per bedroom. Before the regulations I went by number of "sleeping spaces." We have 2 beds in one bedroom, one bed in the other bedroom and 2 sofas in the living room. Our listing said you can fit up to 8 people. Didn't take them long to send us an order to drop our number to 4 ASAP, or we would be fined. A friend of mine tried to get them to allow him to omit the living room and use for a bedroom. They sent an inspector and he flat out denied. 

There is no way to market an str AND keep it secret @Myka Artis  especially since there are so many extreme haters in this city. Neighbors are gleefully snitching. @Mike Wood is right, the only way to win in this game now is to buy commercial.

@Myka Artis they are definitely not going to let up, if anything it is going to get more extreme. Now that they have gotten a taste of the money they can make off of fines they are going to hit every infraction they can find. Money has always been motivation #1 in this city.

Texas has taken the opposite route on the situation. They are glad to collect the money off of the occupancy taxes that are being enforced. Sites like Airbnb will pay the occupancy tax for the owner so the state gets their cut of the pie.