(All information reflects the regulatory environment as of June 2025. Regulations can change, so always verify with the local authority before investing.)

1. Overview – Are Short‑Term Rentals Allowed in Chatham, LA?

Yes. Louisiana’s statewide Short‑Term Rental Law (Act 534 of 2022) authorises STRs on a residential basis. The law pre‑empts municipal bans, but municipalities may adopt additional registration, licensing, or safety requirements.

• City‑level: No separate STR‑specific ordinance has been identified for the Town of Chatham. The Town relies on the standard zoning (Res‑1/Res‑2) and the Louisiana state registration regime.
• County‑level: Avoyelles Parish does not impose a separate STR permit; the parish health and building codes still apply.
• State‑level: All STRs in Louisiana must be registered with the Department of Health (LDH) and obtain a Louisiana Lodging License; they are subject to state sales‑ and lodging‑tax collection and fire‑safety inspections.

Bottom‑line: Investors may operate an STR in Chatham provided they satisfy the state registration and any underlying zoning or building‑code requirements. The Town does not currently require a municipal‑issued STR permit.

2. How to Start a Short‑Term Rental Business in Chatham, LA

| Step | Action | Why it Matters | |------|--------|----------------| | 1. Verify Zoning | Confirm the property is in a zone that permits “short‑term rental” (most residential R‑1/R‑2 districts do). Contact the Town Clerk or Planning Department for a zoning clearance. | Prevents illegal use and costly non‑conforming‑use enforcement. | | 2. Register the STR with the State | • Submit the Louisiana Short‑Term Rental Registration Form (online via the Department of Revenue). <br>• Obtain a Louisiana Lodging License from the Louisiana Department of Health (LDH). <br>• Assign the registration number to the property. | Required by state law (Act 534) for any STR; the registration number must appear on all listings. | | 3. Obtain Local Business License (if required) | The Town of Chatham requires a General Business License for any commercial activity. Apply through the Town Clerk (see Contact Info). | Provides a local tax identification and confirms the business is authorized to operate. | | 4. Secure Insurance | Carry a minimum of $1 M liability coverage (general liability + property) and, if applicable, short‑term rental specific coverage (e.g., Airbnb Host Guarantee or third‑party policy). | Protects against guest injury, property damage, and legal claims. | | 5. Conduct Required Inspections | • Fire Safety Inspection – must be performed by a state‑certified inspector (LDH‐approved). <br>• Plumbing/Electrical – if the unit is a converted single‑family home, verify compliance with the Louisiana Uniform Construction Code. | State law mandates a fire‑safety inspection before the first rental and at least annually thereafter. | | 6. Register for State Taxes | • Obtain a Sales‑Tax/Use‑Tax account with the Louisiana Department of Revenue. <br>• Set up lodging‑tax collection (currently 5% of the gross rental revenue). | Mandatory tax collection and remittance for all STRs. | | 7. Set Up Local Tax Collection (if applicable) | Avoyelles Parish levies a 4% Parish Lodging Tax. Register with the Parish Treasurer or use the state’s unified lodging‑tax filing system. | Parishes may require separate lodging‑tax filings. | | 8. Publish the Registration Number | Include the STR registration number on every platform listing (Airbnb, Vrbo, Booking.com) and in the guest welcome packet. | Legal compliance and transparency for guests and regulators. | | 9. Ongoing Compliance | • File quarterly state sales‑tax reports. <br>• Renew the LDH Lodging License each year (minimum fee). <br>• Keep copies of fire‑safety inspection certificates, insurance policies, and tax records. | Prevents fines, license suspension, and legal penalties. |

3. Required Documents, Permits, Licenses & Guidelines

| Level | Document / Permit | Issuing Authority | Key Details | |-------|-------------------|-------------------|-------------| | State | Louisiana Short‑Term Rental Registration (Form R‑103) | Louisiana Department of Revenue | Provides the state registration number; must be renewed annually. | | | Louisiana Lodging License (LDH‑Form L‑1) | Louisiana Department of Health (LDH) | Required for any lodging operation; includes fire‑safety inspection. | | | Sales‑Tax/Use‑Tax Account | Louisiana Department of Revenue | For collecting/remitting 5% state sales tax on rentals. | | | Lodging‑Tax Registration (optional for parish) | Avoyelles Parish Treasurer or state portal | Parish 4% lodging tax (if applicable). | | Parish | Parish Business License (if any) | Avoyelles Parish Clerk of Court | Generally not required for STRs; check with parish. | | Town | General Business License | Town Clerk, Chatham, LA | Small fee; required for any commercial activity. | | | Zoning Clearance Letter | Town Planning/Zoning Department | Confirms the property is allowed to operate an STR. | | Insurance | General Liability & Property Insurance (min. $1 M) | Private Insurer | Covers guest injury, property damage, and loss of income. | | Inspections | Fire‑Safety Inspection Report | State‑certified fire inspector (LDH‑approved) | Must be on file and renewed annually. | | | Building/Code Compliance (if applicable) | Louisiana Uniform Construction Code enforcement | Applies if structural changes were made to the unit. | | Tax Filing | Quarterly Sales‑Tax Report | Louisiana Department of Revenue | Must be filed by the 20th day of the month following the quarter. | | | Annual Lodging‑Tax Report | Avoyelles Parish Treasurer | Filed with the parish (if applicable). | | Other | Guest Welcome Packet (containing STR registration number, house rules, local contacts) | Owner/Operator | Required for guest awareness and compliance. |

All forms can be downloaded from the respective agency’s website (see “Links to Source Pages”).

4. Specific Regulations – City, County & State

4.1 State of Louisiana – Short‑Term Rental Law (Act 534, 2022)

| Requirement | Summary | |-------------|---------| | Registration | Every STR must be registered with the Louisiana Department of Revenue; a unique registration number is assigned. | | Lodging License | Issued by the Louisiana Department of Health; requires a fire‑safety inspection and proof of compliance with building codes. | | Taxation | 5 % state sales tax + 4 % parish lodging tax (if applicable) must be collected and remitted. | | Advertising | The registration number must appear on all online and printed advertisements. | | Health & Safety | Mandatory annual fire‑safety inspection; any other health‑related inspections required by LDH must be passed. | | Local Pre‑emption | Municipalities may impose additional requirements (e.g., caps, rental‑day limits) but cannot ban STRs outright. | | Penalties | Violations can result in fines up to $5,000 per day, suspension or revocation of the lodging license, and criminal prosecution for willful non‑compliance. |

Full statutory text: Louisiana Act 534 (2022).

4.2 Avoyelles Parish

• No separate STR licensing ordinance identified as of June 2025.
• Parochial taxes: 4 % lodging tax on gross rental receipts (collected via the state’s unified lodging‑tax system).
• Building‑code and health‑code enforcement is through the Parish’s Code Enforcement Office (see contact).

4.3 Town of Chatham

• Zoning – The town’s zoning map designates most residential parcels as “R‑1 (Single‑Family Residential)” or “R‑2 (Two‑Family Residential).” STRs are permitted as a “home‑occupation” use, provided the primary dwelling remains owner‑occupied **