Louisiana Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Louisiana?

Short-term rentals like Airbnb and VRBO have become increasingly popular in Louisiana, especially in tourist hotspots like New Orleans. However, operating an STR comes with a host of legal obligations and regulations that vary by city and parish. This article provides an overview of the key STR rules in Louisiana.

Starting a Short-Term Rental Business in Louisiana

To legally operate an STR in Louisiana, hosts must follow these key steps:

• Obtain permits and licenses: In addition to registering for a state sales tax certificate, hosts may need to acquire local STR permits which vary by city. For example, New Orleans has several STR license types (Residential, Commercial, etc.) each with specific requirements.
• Ensure the property is eligible: STRs must take place in legal dwelling units, defined as having permanent provisions for living, sleeping, eating, cooking and sanitation. Rentals over 30 days are considered long-term and don't require an STR permit.
• Meet insurance requirements: Louisiana STRs, especially in New Orleans, require robust insurance like a $1,000,000 commercial general liability policy to protect against injuries or property damage.
• Comply with occupancy limits: STRs must adhere to occupancy caps based on the number and size of bedrooms. In New Orleans, it's a maximum of 2 adults per bedroom in residential STRs.

One Airbnb host in New Orleans noted the STR market is "unstable" and shared concerns about potentially having to cancel reservations if new restrictions pass. This highlights the importance of hosts staying on top of evolving regulations.

The legal landscape for Louisiana STRs remains dynamic as regulations continue to evolve at state and local levels. Hosts should closely monitor their specific jurisdictions to ensure compliance with all applicable rules. Thoroughly researching STR permits, insurance, taxes, and zoning is critical before starting or investing in these businesses.

Short-Term Rental Licensing Requirement in Louisiana

To legally operate a short-term rental in Louisiana, hosts must obtain the necessary permits and licenses. Requirements vary by city and parish, but generally include registering for state and local taxes, acquiring an STR permit, and meeting insurance and safety standards.

According to the Louisiana Department of Revenue, the key steps for STR licensing are:

Register for state sales tax: Apply for a Louisiana Revenue Account Number and submit the R-1029 sales tax registration form. There is no fee for this registration.

Obtain local STR permit: Contact your city or parish government to apply for the required STR permit. For example:

1. In New Orleans, apply for a Residential or Commercial STR permit online via the city's OneStop web portal. Permit fees range from $250-$1000 depending on the license type.
2. In Lafayette, a $100 annual STR license from the Lafayette Consolidated Government is required starting April 1, 2024.
3. Baton Rouge mandates a $100 STR permit for non-owner occupied rentals, obtained through the city's Permits and Inspections Division.

Submit required documents: Along with the STR permit application, hosts typically need to provide:

1. Proof of property ownership or landlord approval
2. Property floor plans with room dimensions
3. Proof of $1,000,000 commercial liability insurance
4. Parking plan (if applicable)
5. Neighbor notification affidavit
6. Inspection records verifying building and fire code compliance

Pay permit fees: STR permit costs vary by jurisdiction, ranging from $100-$1000 annually. Payment is usually submitted with the permit application.

Display permit number: Once approved, hosts must prominently display their STR permit number in all rental listings and advertisements.

Processing times for STR permits differ by locality but generally range from 2-6 weeks. In New Orleans, the city is not accepting new permit applications until 2025 to focus on renewals and studying program changes.

Penalties for operating an unlicensed STR can be severe. In New Orleans, fines start at $500 per offense, escalating to permit revocation for repeated violations4. Lafayette STRs face losing their license after 3 infractions in one year. Baton Rouge also revokes STR privileges for a year after 3 violations.

To avoid costly fines and business disruptions, Louisiana STR hosts must proactively research their specific city and parish licensing rules. Careful adherence to permitting, insurance, and operational requirements is essential for running a compliant and successful STR.

Required Documents for Louisiana Short-Term Rentals

To operate a legal short-term rental (STR) in Louisiana, hosts must obtain several essential documents. While requirements can vary by city or parish, here's a general list of documents typically needed for STRs in Louisiana:

1. State Sales Tax Registration Certificate: Obtained from the Louisiana Department of Revenue. This allows hosts to collect and remit state sales taxes on rental income.
2. Local Occupational License: Required in most Louisiana cities. For example, in Lafayette, hosts need a $100 annual STR license from the Lafayette Consolidated Government starting April 1, 2024.
3. Liability Insurance Certificate: Most jurisdictions require STR operators to have commercial liability insurance. In New Orleans, a minimum of $1,000,000 coverage is mandatory.
4. Proof of Property Ownership: This can be a recorded Act of Sale, Deed, or Louisiana Homestead Exemption document. If the operator is not the owner, a sworn affidavit from the property owner authorizing the STR operation is required.
5. Government-Issued ID: A copy of a valid driver's license, passport, or voter registration card for the STR operator.
6. Site and Floor Plan: A scaled diagram showing the number of bedrooms, beds, bathrooms, and required off-street parking spaces.
7. Neighbor Notification Proof: Some cities, like Shreveport, require hosts to notify neighbors within 500 ft of their STR plans. Proof of mailing these notices must be submitted with the permit application.
8. Local Contact Information: Designation of a local responsible party available 24/7 to respond to issues, often required via a sworn affidavit.
9. Criminal Background Check: Some jurisdictions, like St. Tammany Parish, require a notarized copy of a criminal background investigation for the operator and local contact person.
10. Zoning Compliance Verification: Confirmation that the property is in an eligible zone for STR operation. In Lafayette, for instance, STRs are prohibited in single-family residential (RS) zones.
11. Safety Compliance Affidavit: A sworn statement certifying that the STR meets all required safety standards, including smoke alarms, fire extinguishers, and evacuation plans.
12. Tax Compliance Proof: Evidence of zero balance on all local taxes, fees, and assessments. This may include property taxes and any other municipal charges.
13. Business Entity Documents: If the STR is operated by a corporation or other business entity, organizational documents or Secretary of State information listing all officers may be required.

Hosts should check with their specific city or parish government for the exact documentation required, as regulations can vary significantly across Louisiana. For example, New Orleans has its own comprehensive STR permit application process with additional requirements.

Remember, providing false information on these documents can result in permit denial, revocation, and potential fines. It's crucial to keep all information up to date and provide records to local authorities upon request to maintain compliance with Louisiana's STR regulations.

Louisiana Short-Term Rental Taxes

Short-term rental operators in Louisiana must navigate a complex tax landscape that includes state, parish, and municipal taxes. Understanding these various tax obligations is crucial for compliance and financial planning. Here's a breakdown of the primary taxes applicable to short-term rentals in Louisiana:

1. State Sales Tax: Louisiana imposes a 4.45% state sales tax on short-term rental fees. This tax applies to all rentals statewide and must be collected and remitted to the Louisiana Department of Revenue.
2. Hotel/Motel Occupancy Tax: An additional occupancy tax of 4-5% is typically levied on short-term rentals, similar to hotels and motels. The exact rate can vary by location.
3. Local Sales Taxes: Parishes and municipalities may impose their own sales taxes on top of the state tax. These local sales taxes generally range from 2-7%, depending on the jurisdiction.
4. Local Hotel Taxes: Some areas have specific local hotel taxes that also apply to short-term rentals. For example, in New Orleans, voters approved an additional 6.75% tax on short-term rentals in 2019.
5. Stadium and Exposition District Room Occupancy Tax: This tax applies specifically to Orleans and Jefferson parishes and is remitted to the Louisiana Department of Revenue.
6. Ernest N. Morial New Orleans Exhibition Hall Authority Tax: This is an additional tax for properties in Orleans Parish, also remitted to the state revenue department.

In total, the combined tax rate for short-term rentals in Louisiana can range from approximately 10% to over 20%, depending on the specific location and applicable local taxes.

Potential Tax Write-offs and Deductions

While short-term rental operators face significant tax obligations, they may also be eligible for various deductions to offset their taxable income. Some potential write-offs include:

1. Property maintenance and cleaning expenses
2. Utilities (electricity, water, internet, etc.)
3. Furnishings and appliances
4. Property insurance
5. Mortgage interest
6. Property management fees
7. Marketing and advertising costs
8. Supplies for guests
9. Depreciation of the property

It's important to note that the availability and extent of these deductions can depend on various factors, including how often the property is rented out and whether it's used personally by the owner. Consulting with a tax professional familiar with Louisiana's short-term rental laws is advisable to ensure proper tax planning and compliance.

Remember, tax laws and rates can change, and they may vary significantly between different parishes and cities in Louisiana. Short-term rental operators should regularly check with state and local tax authorities for the most up-to-date information and requirements specific to their location.

Does Louisiana Strictly Enforce STR Rules?

Louisiana's enforcement of short-term rental regulations varies significantly by city and parish, with some areas being much stricter than others. However, based on discussions among hosts on platforms like Bigger Pockets and Reddit, Louisiana is generally not considered an overly Airbnb-friendly state compared to other markets.

New Orleans, in particular, is known for having some of the tightest STR restrictions and most aggressive enforcement efforts in Louisiana. The city has dedicated significant resources to monitoring listings, conducting inspections, responding to complaints, and issuing fines for non-compliant properties. Hosts on Reddit report that after months of diligent reporting by neighbors, illegal STRs in New Orleans have faced fines of $10,000 or more and had their permits revoked.

In contrast, enforcement in other parts of Louisiana, like Shreveport, has been more limited thus far. Some hosts admit to operating STRs without permits in these areas and have not yet faced consequences. However, as the STR industry matures and impacts on neighborhoods grow, many expect that cities like Shreveport will ramp up enforcement efforts similar to New Orleans.

Despite the risks, some hosts continue to operate STRs in Louisiana without strictly following all the rules and regulations. On Bigger Pockets, one New Orleans host shared, "I still rent my condo on Airbnb without a permit. So far no issues but I operate under the radar." Others argue that the time, cost, and complexity of compliance are too burdensome and make operating a legal STR infeasible.

However, the consensus among experienced hosts is that violating STR rules is not worth the potential fines, legal issues, and loss of business. One Shreveport host cautioned, "Make sure you really understand the ordinance and have all your ducks in a row before listing. The permit process is no joke, and I've heard of people getting fined for missing documents or violations."

Overall, while some hosts may skirt the rules, Louisiana is not considered a particularly Airbnb-friendly state given the strict local regulations, permit requirements, and increasing enforcement seen in key markets like New Orleans. Hosts who choose to operate STRs in Louisiana must be diligent about compliance and prepared for the possibility of future crackdowns as more cities aim to curb the negative impacts of short-term rentals on local communities.

How to Start a Short-Term Rental Business in Louisiana

Starting a short-term rental (STR) business in Louisiana requires careful planning and adherence to local regulations. Here's a step-by-step guide to help you get started:

Research local regulations

Before diving in, thoroughly investigate your city's STR laws. Each parish and municipality in Louisiana has its own rules. For instance, New Orleans has strict zoning restrictions and permit requirements, while smaller towns may have more lenient policies. Check your local government's website or contact the planning department for specific guidelines.

Choose your property wisely

Select a property in a zone that allows STRs. Consider factors like proximity to tourist attractions, ease of access, and neighborhood safety. In New Orleans, for example, STRs are prohibited in most of the French Quarter, so you'll need to look elsewhere.

Obtain necessary permits and licenses

Apply for all required permits and licenses. This typically includes:

1. State sales tax registration
2. Local STR permit
3. Business license
4. Zoning clearance

Tip: Start this process early, as it can take several weeks or even months in some areas.

Secure proper insurance

Obtain adequate insurance coverage. Most Louisiana jurisdictions require at least $1,000,000 in commercial liability insurance for STRs. Consider additional coverage like property damage insurance to protect your investment.

Set up your business structure

Decide on a business structure (LLC, corporation, etc.) and register with the Louisiana Secretary of State. This can provide liability protection and tax benefits. Consult with a local attorney or accountant for advice tailored to your situation.

Prepare your property

Ensure your property meets all safety requirements, including:

1. Smoke detectors and carbon monoxide alarms
2. Fire extinguishers
3. Emergency exit plans

Also, furnish and decorate your space to appeal to your target market. Consider hiring a professional photographer to showcase your property.

Develop house rules and guest agreements

Create clear house rules and a comprehensive guest agreement. This should cover issues like noise policies, parking restrictions, and check-in/check-out procedures. Having these in place can help prevent conflicts and protect you legally.

Set up your listing

Create attractive listings on platforms like Airbnb, VRBO, and local vacation rental sites. Highlight your property's unique features and nearby attractions. Be sure to include your permit number in all listings, as required by most Louisiana jurisdictions.

Implement a pricing strategy

Research comparable rentals in your area to set competitive rates. Consider using dynamic pricing tools to adjust rates based on demand, seasons, and local events. Remember to factor in all taxes and fees when setting your prices.

Establish a management system

Decide whether you'll manage the property yourself or hire a professional management company. If self-managing, invest in property management software to handle bookings, cleaning schedules, and guest communications efficiently.

Set up tax collection and remittance

Ensure you're collecting and remitting all required taxes, including state sales tax, local occupancy taxes, and any special district taxes. Consider using automated tax collection tools offered by some booking platforms to simplify this process.

Market your rental

Develop a marketing strategy to attract guests. This might include:

• Creating a website for your rental
• Utilizing social media platforms
• Partnering with local tourism boards or businesses
• Offering special promotions during off-peak seasons

Stay informed and adapt

Keep up with changes in local STR regulations and market trends. Join local host associations or online forums to stay connected with other operators and share best practices.

Remember, success in the Louisiana STR market requires more than just following rules. Focus on providing exceptional guest experiences, maintaining your property meticulously, and being a responsible member of your community. This approach will help you build a positive reputation and a sustainable business in Louisiana's competitive STR landscape.

Who to Contact in Louisiana about Short-Term Rental Regulations and Zoning?

In Louisiana, short-term rental regulations are primarily managed at the local level. Here are some key contacts for major cities and resources for STR hosts:

New Orleans

• Short Term Rental Administration (STR Office)
• Phone: (504) 658-6100
• Email: str@nola.gov
• Website: https://nola.gov/short-term-rentals/
• Office location: 1340 Poydras St., 8th floor, New Orleans, LA 70112

Shreveport

• Shreveport Metropolitan Planning Commission
• Phone: (318) 673-6480
• Email: mpc@shreveportla.gov
• Website: https://www.shreveportcaddompc.com/str

Lafayette

• Community Development & Planning Department
• Phone: (337) 291-8431
• Address: 220 West Willow Street, Building B, Lafayette, LA 70501
• Website: https://www.lafayettela.gov/departments/development-planning

Baton Rouge

• Planning Commission
• Phone: (225) 389-3144
• Email: planning@brla.gov
• Website: https://www.brla.gov/662/Planning-Commission

For hosts looking to connect with others and stay informed about STR regulations in Louisiana, consider joining these communities:

• Airbnb Host Community Center - New Orleans: https://community.withairbnb.com/t5/New-Orleans/ct-p/New-Orleans
• NOLA Short Term Rental Alliance Facebook Group: https://www.facebook.com/groups/NOLAShortTermRentalAlliance/
• Louisiana Vacation Rental Managers Association: https://www.vrma.org/page/louisiana-chapter
• Bigger Pockets Real Estate Forum - Louisiana: https://www.biggerpockets.com/forums/311-louisiana-real-estate-investing
• Reddit r/NewOrleans (often discusses STR issues): https://www.reddit.com/r/NewOrleans/

Remember that regulations can change frequently, so it's important to regularly check with your local government offices for the most up-to-date information. Additionally, joining local host groups can provide valuable insights and support for navigating the complex landscape of short-term rental regulations in Louisiana.

What Do Airbnb Hosts in Louisiana on Reddit and Bigger Pockets Think about Local Regulations?

Airbnb hosts in Louisiana have shared their experiences and opinions on various online platforms, including Reddit and Bigger Pockets. Here are some real-life stories and comments from verified Louisiana threads and forums:

Reddit - r/NewOrleans

In a thread titled "New Orleans places strict limits on AirBnbs, other short-term rentals," hosts discussed the challenges of operating STRs in the city. One host shared their experience reporting an illegal Airbnb:

"Report the fuck out of illegal Airbnb's. Take pictures of people going in and out, the cleaning crew coming in, the lack of permits being shown and the realtor locks they are using. It took me 6 months of relentless reporting on a illegal double across from me but after 10k in fines, it's now regular rentals."

Bigger Pockets - Louisiana Real Estate Investing

In a forum post titled "New Orleans STR Changes Could Lead to Opportunities or Headaches," a real estate agent shared insights on the potential impact of new regulations:

"The recent changes to short-term rental rules in New Orleans could shake up the market. With the city limiting permits and cracking down on illegal rentals, we might see an increase in long-term rental supply. This could potentially drive down both rents and home prices in the medium-term, presenting opportunities for savvy investors."

These experiences highlight the mixed opinions among Louisiana hosts regarding local regulations. While some find the rules too burdensome and choose to operate illegally, others emphasize the importance of compliance and working within the legal framework.

Overall, hosts on Reddit and Bigger Pockets acknowledge that Louisiana's STR landscape is complex and varies significantly by city. Many advise thoroughly researching local regulations and carefully considering the risks and benefits before starting or investing in a short-term rental business in the state.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each area and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.