NEW ORLEANS - The New Orleans City Council has passed what it called "compromise" legislation to begin regulating the short-term rental industry already operating in the city.

Mayor Mitch Landrieu's administration drafted rules to regulate short-term rentals and negotiated with AirBnB, one of the major short-term rental companies in the country. Still, the mayor's sister spoke out against the concept, saying the Garden District neighborhood can't afford more strain, as it is already burdened with parking problems.

The council voted 5-2 in favor of the regulations Thursday.

The mayor's office said property owners with homestead exemptions who rent out rooms in their homes will be able to do so year-round under the regulations. However, short-term rentals will be banned in most of the French Quarter.