New Orleans Short-Term Rental Regulations

New Orleans Short Term Rental Services, Regulations, and Profitability

 

New Orleans STR Overview

New Orleans is one of the best markets in the nation for Airbnb profitability. With huge events like Mardi Gras and Jazz Fest along with the local music and culture year round, it always seems to be busy with tourists. The STRs in the city maintain some of the highest occupancy rates nationwide. However, in the last few years they have introduced more restrictive New Orleans STR regulations which may limit the short term rental potential for outside investors.

 

New Orleans Airbnb Profitability

As of June 2022

67%

Occupancy Rate

While New Orleans has an extremely favorable occupancy rate, it's also important to understand it's very seasonal. This is the average throughout the year, but in the early months, especially during Mardi Gras and Jazz Fest, this number will be closer to 90%. And in the middle of the summer it may drop below 50%, but overall it remains to be excellent throughout the year.

$237

Average Daily Rate

At $237 a night New Orleans is not one of the most expensive places in the country, but also far from the cheapest. Combined with the excellent occupancy rate it provides an exciting investment opportunity. The average daily rate can vary dramatically based on the time of year and the size of the house, but $237 is a great year-long average.

$365,000

Median Property Price

Like most areas in the country, the housing market in New Orleans has risen dramatically over the last couple of years. However, the city remains to be very affordable compared to other larger cities. Also, many of the historic New Orleans homes are 'doubles', meaning the purchase price often includes two units making it even more affordable from an investment perspective

While the numbers all appear to be great, it's important you also have a full understanding of the New Orleans STR regulations. In recent years New Orleans has implemented many regulations which can often prohibit STR's unless various requirements are met. More on the regulations in the next section.

 

New Orleans STR Regulations

New Orleans is very restrictive when it comes to setting up an STR, especially if you aren't a resident yourself. Understanding New Orleans STR regulations in advance is critical to ensure you don't purchase an Airbnb investment property in a neighborhood that prohibits short-term rentals.

Zoning Restrictions

New Orleans has different STR regulations depending on the zoning classification of the property itself. Many of the zoning areas prohibit short term rentals altogether, some require you live on the property and hold a 'homestead exemption', while others allow commercial STR's to be set up, but even those often have restrictions. 

  • Click here to view a document which breaks down New Orleans STR regulations by zone. 

  • Click here to view an interactive map showing the zoning classification throughout the city. To see the designated zoning, click on "Layers" at the top of the map and then click on the toggle for "zoning".

Permitting

Every short term rental in New Orleans has to be permitted with the city. The permits are broken up into various categories, each which determines the legality of any given STR.

  • Partial permits only allow STR's if the owner also lives in that house. So they are sharing their house with other guests, not providing the entire house to them. 

  • Small permits only allow an owner to rent out one home on any given property as an STR, but also require the owner live on the property with a homestead exemption.

  • Large permits allow an owner to rent out multiple homes on any given property as an STR, but also require the owner live on the property with a homestead exemption.

  • Commercial permits are needed for any outside investor that does not plan to live in the house personally. These permits are restricted to very specific zones, and also have restrictions on the total amount of STR's you can have on any given property. 

Homestead Exemption

The homestead exemption is a critical piece of the New Orleans STR regulations, as most of the permit types require the property also have a homestead exemption assigned to it. The homestead exemption is something a homeowner must apply for and provides tax benefits for living in the house, but each homeowner can only have one active homestead exemption in the city. Also, to get a homestead exemption you must be living in the home and show proof of that and until then the city will not issue any owner-based STR permit. For more on the homestead exemption, click here to visit the city website.

Permit Fees and Taxes

Along with needing to apply for a permit, there are annual fees associated with the permitting process. Generally the larger the permit, the higher the fees. Residential STR permits range from $250 to $500 annually. Commercial permits start at $1,000 plus the applicable fee for the operators permit, which range from $150 to $1,000.

New Orleans also has implemented various taxes. However if you are listing on Airbnb most of these taxes are collected by Airbnb on the owners behalf. The city collects a sales tax of 5% and an occupancy tax of 6.75%, along with occupancy fees of anywhere from $5 - $12 per night. For more specifics on the fee structure, click here.

Occupancy Restrictions

Any permitted property in New Orleans must also adhere to the occupancy regulations set forth by the city. They only allow two guests per bedroom. So even if you have an extremely large home with couches and bunk beds throughout, if it's permitted as a three bedroom home it's legally only allowed to house six guests at a time.

All of the New Orleans STR regulations are specific to Orleans Parish. If you would like to download the entire STR handbook and review the regulations yourself, click here.


If you are looking at homes outside of Orleans Parish, the regulations may differ.  Reach out to us and we would be happy to discuss the regulations that might impact any potential investment you are looking at in any other Parish, City, or State.

 

STR Services We Offer In New Orleans

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New Orleans Listing Optimization and Automation Services

Managing a short term rental in New Orleans doesn't need to be time consuming or expensive. We can help you create a listing optimized to convert while also automating the process from start to finish utilizing the same software as high end property management companies. We can also align you with New Orleans vacation rental turnaround specialists, professional real estate photographers, copywriting professionals, and more...

New Orleans Airbnb Turnover and Cleaning Services

One of the most important tasks for any STR is making sure the home is cleaned and ready for the next guest. With guests often checking out and checking in on the same day, finding a reliable turnkey turnover crew in New Orleans can be a difficult process. Tasks like washing linens, replacing coffee, taking out trash, setting thermostats, doing dishes - these are all well within the scope of work of our providers.

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Find Profitable New Orleans Vacation Homes and Airbnb Investments

Let us help you navigate local regulations and find your next profitable Airbnb investment in NOLA. We use data to analyze the revenue, occupancy, nightly rate, and estimated home value to determine the areas and homes that will generate the highest ROI for an investor. We also take the time to study and understand New Orleans STR regulations in that area to ensure a smooth and easy permitting process once the home is purchased.

New Orleans Regulation and Permitting Compliance

Illegal short term rental's are not only detrimental to New Orleans and the local community, but it also decreases the occupancy and profitability of the legally permitted properties throughout New Orleans. And it's a problem that's growing everyday. We have a customized and automated solution to combat this problem and work with local governments to product weekly and/or monthly city-wide compliance reports that can quickly locate non-permitted and illegal listings.

 

More About Our Team and Our STR Success

Everyone on the Simplify STR team owns and manages their own portfolio of Short Term Rental Properties, so we have a deep understanding of what it takes to achieve success in the marketplace. Our team consists of licensed real estate agents, account managers, and software engineers, and more - all with a passion for short term rentals. We help our customers improve their listings, find profitable properties, and automate processes to ensure they are maximizing profitability. 

We also help cities on the regulatory side. While most property owners in New Orleans are legally permitting and managing their properties, there are countless illegal Airbnb's and short term rental's flooding the marketplace. In addition to helping homeowners find profitable properties and optimize their current listings, we are committed to solving this issue of non-compliance in coordination with local governments. Illegal Airbnb's only hurt the local community and other properly permitted homes, by assisting with the compliance process we aim to protect the investment opportunity STR's provide and we have the perfect team to tackle this issue.

New Orleans STR Regulations Team