Legislation Means TIMES ARE A CHANGIN'!

As of the writing of this article (May 2023 due to publishing timelines), July 1st, 2023, is an important day in our local real estate market. It is the effective date of our newest Short Term Rental (STR) legislative ordinances that were voted in on March 23rd, 2023. (Ordinances 029381 MCS and 029382 MCS for reference). If you haven’t heard the big news, single family zoned STRs are facing a major shake up in the wake of these newly appointed rules. I’ll share some highlights of them below!

Some New STR Rules Effective July 1st, 2023, in Orleans Parish: 
  1. Only ONE licensed short-term rental permit per city square
  2. Licenses are given on a lottery-based system 
  3. Only “natural persons” are allowed to be licensed. So, no LLCs, corporations, etc., can be permitted
  4. Only one short-term rental permit allowed per person
  5. Two additional properties per square permitted to petition for a license 
Regardless of your opinions of STRs, I would implore all to consider what may become of these changes in the marketplace. My assumptions are that there will be those who pivot into using the property/properties for other purposes such as a second home, a primary residence, or for use by family/friends. Then, there will be those who pivot from using it for sub-30 day rentals to 30+ days as they swing from short to mid-term rentals. Keeping it furnished, they will still ask a premium rent amount. There may also be some who resort to either offering a long-term rental that is furnished or unfurnished if they are okay with going through the efforts of removing all of the decor and furniture. Lastly, some will decide to sell either due to a variety of reasons. I presume some may sell because of their high speculations of STR revenue causing them to overpay for a property where it won’t turn a profit without the nightly rates. 
So, again, regardless of your opinions of STRs, how would your business do with more inventory in furnished 30+ day rentals 30+ day, furnished long-term rentals, more long-term rentals in general if they unfurnished them, or more inventory for sale? Depending on the market, it could benefit you/your clients, or it could have an impact, for example, on how long a long-term rental will rent due to what’s available at the time. On top of all of this, commercially zoned properties will be concerned for new ordinances as well. Those have not been finalized and the future of those permits are yet to be seen. 
Even still, investor clients buying for investment purposes in Orleans Parish will need to know that this legislation exists and more is being considered as it may limit their potential strategies. As founder and president of one of the local real estate investor meetups, I have found many investors, especially those not familiar with our market, do not know that this exists so they are considering properties for Short-Term Rentals where that may not be a possibility. With this legislation, times are a changin’, and the best thing is to further educate yourself on what is happening and how to educate your clients as they make decisions around this ever changing market. 
When in doubt, give me a call. I am here to help! Shoot me a text or give me a call, and I’d be happy to talk with you about any situations you may have that you think I may be interested in helping with. Let’s connect: 985-259-2858.