How a New Orleans STR Case and the Newport Beach STLP Permit Renewal Form are Related

That line on your Newport Beach permit — what does it really mean?

If you’ve renewed a Short-Term Lodging Permit recently, you’ve probably initialed this sentence without really thinking about it.:

“This permit is only valid for the term issued and does not convey or grant a property right that runs with the land.”

Why does the city put that on the form?

In plain English, it signals that an STR permit is a time-limited license, not a permanent property right, and it can be changed, tightened, or even discontinued by future local policy. Courts around the country — and most recently in New Orleans — have largely affirmed that cities hold broad power to regulate STRs. Aside from striking down an outright corporate-ownership ban, the trend in the courts has been to uphold local rules and enforcement.

We’re not being alarmist here, and we are not saying that the City of Newport Beach is going to enact a ban on STRs anytime soon.

But it’s worth asking: why is the City reminding owners that the permit doesn’t “run with the land”? The most likely answer is that it’s meant to reduce arguments later that an STR permit created a vested, permanent right immune from future rule changes. And that means at some point in the future, if a new City Council moves to ban or limit STRs, the City would argue you already agreed you don’t have a vested property right that requires compensation under the “takings clause” of the Constitution.

What this means for NBSTRA members

• Treat your permit like a renewable license, not a forever entitlement.

• Stay engaged locally — rules are made (and revised) at City Hall.

• Support NBSTRA so responsible operators have a credible, organized voice when changes are proposed.

• Keep your operation squeaky-compliant; it helps us argue for fair, stable rules.

Bottom line: the courts are saying cities have room to regulate. That’s exactly why NBSTRA exists — to make sure responsible, permitted STRs remain part of Newport Beach’s future.