In 2023, the City of New Orleans updated its short term rental law. Included within that law is a section that hasn’t gained much attention, but stands to significantly change the enforcement of that law.

The city’s new ordinance created a private right of action that allows anyone within 300 feet of the lot line of any property operating as an illegal STR to obtain an injunction (i.e., an order requiring that they stop) AND GET ATTORNEYS FEES for doing so.

That’s a big deal.

This was not challenged in the recent court battle, and some attorneys have expressed doubts about whether the city can enact such a law.

I actually reached out during the legislature process to ask for this, so I’m glad it’s in there.

Attorney’s fees can be a very effective deterrent, because financial damages in situations like this are very hard to quantify, so it may not make sense to hire an attorney. But now, an owner or “legal occupant” of a property that is within 300 feet of an illegal STR can ask a judge to order the illicit operator to stop.

If they don’t stop, they’re now violating a court order, and that’s not really a good idea if you’re trying to operate a business.

The judge can also grant attorney’s fees to the person bringing that action, so the illegal operator could end up reimbursing your attorney for pursuing the lawsuit.

To my knowledge, no cases have been filed on this yet. But if it works as intended, it’s a VERY effective tool against illegal operators (and a massive threat if you’re operating illegally.)

I’ve copied the relevant section below, but you can also read it straight from the source:

Sec. 26-630. – Private right of action.

(a) Any owner or lawful occupant of property within 300 feet of the lot line of any property operating as a short-term rental in violation of this article, in addition to any person who otherwise satisfies the jurisprudential requirements for legal standing to assert a claim, shall have a private right of action against the owner or operator of the short-term rental to enjoin violations of this article.

(b) The requirements of this article constitute rules of public order, violations of which may be preliminarily enjoined without the demonstration of irreparable injury.

(c) Any person who successfully obtains injunctive relief by prosecuting a private action authorized by subsection (a) shall be entitled to reasonable attorney’s fee incurred in prosecuting the action.

(d) The private right of action created by this section shall be in addition to, and not in lieu of, any other legal rights to seek damages or pursue injunctive or other relief against short-term rental owners and operators for nuisances or other violations of this article or other laws.

(M.C.S., Ord. No. 29381, § 2, 3-23-23, eff. 7-1-23)