New Orleans STR Regulations - Questions

[Michael134]

Hello All,

I am currently a host in New Orleans with an 'entire home' listing. In reality it is an efficiency/studio apartment in what used to be a garage, so it's a seperate building. I have a few questions about this as far as the new regulations go.

Should I instead label it as a private room for compliance with new rules and general accuracy of the listing? (It is a completely separate building but I want to avoid the 90-day limit)

Where can I find a list of all the new rules/Regulations?

As I always live on-site in the seperate house when renting it out, am I subject to the 90-day/year rental limitations?

I have read that you are automatically registered for the necessary permit but was wondering if this is true and, if not, where/how I can register and if so, how I can confirm I am registered. 

Thanks in advance for your help!

[Alice-and-Jeff0]

It would be unwise for you to ask other hosts here on the Community forums on how you can bypass the laws in your community.  You need to consult with a professionals in your area as the laws are not from Airbnb but from the New Orleans government.  

https://www.airbnb.com/help/article/867/new-orleans--la

http://nolasmallbizlaw.com/2016/about-new-orleans-airbnb/

http://www.nolo.com/legal-encyclopedia/legal-restrictions-renting-your-home-airbnb-other-rental-serv...

[Chris291]

Spoken like someone who has truly never dealt with New Orleans local government.  

[Valerie55]

Here's the latest from the City -- However they thought they'd be able to open an office the day after Mardi Gras (really? how ambitious!), I have no clue

http://www.nola.gov/short-term-rentals/str-licensing-requirements/

So the new date is March 13 for filing applications.

[Marcie8]

I'm in New Orleans with a similar situation. I rent out the guest house on my property. In my opinion it's the same as renting half of a double, so I am considering myself to be in that group as I live in the main house full time. Even though I don't share a wall with the guest house, I think it is functionally the same as renting half a double of an owner occupied property.

I'm also digging around looking to make sure AirBnB is doing the 'pass through' registration as stated in the media blasts put out by the city. I want to make sure my permitting is squared away. I know Airbnb is collecting and remitting local taxes for us so I imagine they have us on the city books somewhere. If you find any additional information, please share!

[Callie4]

Any update?  I cant figure out how to do the pass through registration here.

[Marcie8]

Not yet. Everything I've read says that if you are only registered on airbnb, the city will contact you for any additional information and to collect the licensing fee.

[Callie4]

I wonder how they determine the rental type.  Accessory: 1/2 double etc.  It would seem to need input from us.

[Shena2]

I just called AirBnB (Mar 22) and they said that the "pass through" registration is not currently acive but should be avaiable Mar 31.  I know the deadline from the city said it will be enacted Apr 1st, but I also want to avoid going to City Hall as much as possible.  As for now, I will wait until I get a notice from the city or AirBnB makes the pass through available.  That seams much easier.  

[Eileen105]

Hi Marcie, Did you ever find out about this? I was just turned down by the city for a license for a detached guest house on the grounds no accessory structures are allowed. 

[Valerie55]

(Methinks you procrastinate too much) Don't depend on anyone else to file your permit for you. That ain't happening. Airbnb will pay the city your taxes, but it is YOUR responsibility to apply for your license. Thee City can find you then fine you, bacause Airbnb will let them know you are operating an STR.  

PLEASE read the permit requirements from the city and file your application by March 30. Otherwise you risk a fine.

Use the Short Term Rental brochure the city provides and begin your documentation:  

http://www.nola.gov/nola/media/One-Stop-Shop/Safety%20and%20Permits/STR-Brochure-G.pdf

Here's what I have prepared to date that I can uipload as attachments with my application:

- proof of additional $500,000 insurance (i got a new homeowner's policy that allows and covers me with an STR, as I found my homeowner's would not honor claims if i have an STR)

- a PDF of Emergency Contact Info posted for my guests

- a PDF of the house layout with fire escape exits marked, with location pf smoke alarms and fire extinguishers

- a PDF photo collage of smoke detectors and charged/working fire extinguishers 

- a PDF of proof of payment of property taxes

There are other requirements, but I don't know how to show proof of these:

- proof of compliance with codes (electrical, mechanical, building, etc)

- proof of no liens (other than showing my taxes are paid)

This has take some time to create.  Best of luck to you all. I may find a visit to City Hall is needed to make sure I am in compliance. 

[Callie4]

Part of the negotiation Airbnb had with the city was to enable pass-through registration to make the process less painful than having to trudge down to city hall, which is always a chore.

I hear you re the other items, but if you look at the official city brochure (mine is well worn) it lists items that are required (like the insurance) and items they "may request".  Its smart to have ready the "may request" items.  

on your question re "compliance with codes", the city's online form seems to only ask you to attest that you are in compliance.  I would also think a home inspection report from when the property was purchased could be ample proof.

oh yeah - on that brochure it talks about the pass-through registration process "for your convenience."

So notwithstanding the excellent avice about preparation, the question remains - Airbnb - when/how do we use the pass through registration process you negotiated?

[Jan177]

@Valerie55 

Hi Valerie, just wondering why you got the additional insurance. I didn't see anything about that in the STR brochure I read. That said, as a new host I've been reading A LOT (sometimes three times) on Airbnb and nola.gov that my eyes are going cross and my brain's on overload.

Do you not trust the Host Protection Insurance? 

https://www.airbnb.com/help/article/937/what-is-host-protection-insurance

I did talk to my State Farm insurance agent and let her know about the STR, she doesn't think there should be a problem. I will continue the conversation with her to be sure I'm covered.

[Jan177]

@Valerie55 

Oops, I just reread the STR brochure and saw they require insurance for $500,000 and up!

I still have the same question though, doesn't the Airbnb Host Protection cover this? Their protection plan is up to a $1 million. 

[Valerie55]

I didn't miss the insurance item. I know I have $500,000 liability with Airbnb. My home is a duplex and my parents live in one apartment and I live in the other. My airbnb is in my apartment (renting two bedrooms and a bath).

Any claim under my homeowners insurance would have been invalidated by my having  the STR. So, for example, if my parents had a fire in their apartment, the claim would not have been honored because of my STR. Likewise, if a guest accidentally started a fire and damaged part of my parent's apartment or furnishings, the homeowners would not have allowed any claim.  

So all I am saying is check with your agent. Even if damages are not caused by a guest, you may have invalidated your coverage with an STR in your home.  If your property is a rental only - and you do not live there - it may be a different case.

Also, I am not sure if $500,000 liability is enough. I'm no wealthy, but my balance sheet improves monthly, and I'd hate to see a single lawsuit clean me out.  So for the extra $1000 per year, I can sleep at night knowing my risks are reasonably covered.