Baton Rouge, Louisiana, is experiencing a robust short-term rental market, with high occupancy rates, significant revenue growth, and a wide range of convenient and fully furnished options available, making it an attractive destination for both travelers and investors.
Thriving Short-Term Rental Market in Baton Rouge, Louisiana
Baton Rouge, Louisiana, is experiencing a robust short-term rental market, driven by strong demand and favorable market conditions. The city's short-term rentals on platforms like Airbnb and Vrbo boast an impressive 40% average occupancy rate, indicating a steady and consistent stream of guests. Additionally, these rentals command an average daily rate of $199, contributing to a substantial monthly revenue of $13,187. This performance is further bolstered by a growth in active listings, with an 8% increase over the past year. These metrics highlight the lucrative opportunities and stability in the short-term rental sector in Baton Rouge, making it an attractive destination for both investors and travelers.
Short-Term Rental Regulations in Baton Rouge, Louisiana for 2024
Registration and Licensing
- All short-term rental (STR) operators must register with the city for a lodging tax license or use a registered short-term rental marketplace like Airbnb that collects and remits taxes on their behalf.
Permit Requirements
- A Short-Term Rental permit issued by the Permits and Inspections Division is required, with a $100 annual permit fee.
Occupancy Limits
- For owner-occupied rentals, hosts can rent out all bedrooms except one.
- For non-owner-occupied whole-home rentals, the total occupancy is limited to two people per bedroom plus two additional people.
Parking Requirements
- One off-street parking space is required for each bedroom used for short-term rental. Alternative parking arrangements may be approved by the Planning Commission.
Safety Standards
- Properties must meet safety requirements, including smoke detectors in each bedroom, carbon monoxide detectors, fire extinguishers, and exit signage.
Insurance Requirements
- A minimum $1,000,000 commercial general liability insurance policy is required, naming the city as an additional insured.
Guest Registration Records
- Hosts must maintain guest registration records, including names, addresses, dates of stay, number of guests, and rates charged. These records must be kept for at least 3 years and be available for city inspection.
Listing and Advertisement Requirements
- STR listings and advertisements must include the city permit number and specify the occupancy limit. If the property is accessible for guests with disabilities, this information must also be included.
Tax Compliance
- Operators must collect and remit local lodging taxes (including local sales tax, local hotel occupancy tax, and Louisiana state sales tax) unless using a registered STR platform like Airbnb.
Enforcement and Violations
- Short-term rental owners can lose permission to operate if they have three violations of the regulations adjudicated by the Planning Commission during a one-year period.
- Potential fines of up to $500 per day for operating without a permit or violating the ordinance.
Top Neighborhoods for Airbnb Revenue in Baton Rouge, Louisiana
1. Spanish Town
- Appeal: Located in the heart of downtown Baton Rouge, Spanish Town is the city’s oldest neighborhood. It offers a rich historical charm, modern amenities, and easy access to key attractions like the Louisiana State Capitol, the Mississippi River levee, and various restaurants. Properties like the "Spanish Town Bungalow" and "Spanish Town Revival | Upscale Retreat | King Bed" are highly rated for their historical features, high-end finishes, and convenient locations.
2. Beauregard Town
- Appeal: As Baton Rouge’s second oldest neighborhood, Beauregard Town provides a blend of historical charm and modern comfort. It is close to LSU, Tiger Stadium, and the River Center, making it ideal for both business and leisure travelers. Properties here, such as the "Charming, updated cottage in Downtown Baton Rouge," offer fully equipped kitchens, keyless entry, and great outdoor spaces.
3. MidCity
- Appeal: MidCity is a central and vibrant area with easy access to shops, restaurants, and local attractions. It is a short drive from LSU, downtown, and the BTR airport. Guesthouses like the "Tiny House In The Heart of MidCity" and "Cozy, convenient guesthouse in Capital Heights" are popular for their quiet, safe neighborhoods and modern amenities.
4. College Town
- Appeal: This neighborhood is close to LSU, making it a favorite among visiting students, parents, and fans attending LSU games. The "LSU Studio Apt." is a highly rated option, offering a safe and quiet environment with proximity to the LSU lakes and Tiger Stadium.
5. Health District
- Appeal: Located near I-10 and I-12, the Health District offers swift access to dining establishments, shops, and key medical facilities. The "A Contemporary Comfort Health District Hideaway!" is a tranquil retreat that appeals to couples, business travelers, and solo adventurers due to its modern amenities and convenient location.
These neighborhoods are highly appealing due to their central locations, historical charm, modern amenities, and easy access to major attractions and facilities in Baton Rouge.
Discover the Charm of Baton Rouge: Local Attractions and Insider Tips
Top Local Attractions
Historical Landmarks
- Old State Capitol: A Gothic-Revival castle that served as the state's capitol until 1932. Admire its stunning architecture and historical exhibits. Admission is free.
- Louisiana State Capitol: The tallest state capitol building in the nation, offering a 27th-floor Observation Deck with panoramic views of Baton Rouge.
- The Old Governor’s Mansion: Explore the state's history and see the former residence of Louisiana's governors.
Museums and Cultural Sites
- LSU Rural Life Museum: An outdoor museum showcasing rural 19th-century Louisiana life, with artifacts, plantation quarters, and unique architectural styles.
- Capitol Park Museum: Learn about Louisiana's unique history, from Louis Armstrong to Huey P. Long, and the significance of the Mississippi River and Gulf of Mexico.
- Louisiana Arts and Science Museum: A great place to learn something new, with a variety of exhibits and interactive displays.
Plantations and Nature
- Magnolia Mound Plantation: One of Louisiana's oldest intact plantation homes, featuring French Creole architecture and historical furnishings.
- Bluebonnet Swamp Nature Center: A 103-acre nature reserve with boardwalks and gravel paths through cypress-tupelo swamps and hardwood forests. Spot local wildlife like armadillos and otters.
Family-Friendly Attractions
- Baton Rouge Zoo: Home to a diverse range of animals, including parrots, tigers, flamingos, and more. Perfect for families with kids.
Arts and Entertainment
- Shaw Center for the Arts: A contemporary arts center with various exhibits and performances. A great spot for art enthusiasts.
- Downtown Baton Rouge: Enjoy the city's nightlife, dining options, and live music events, particularly on historic Third Street.
Insider Tips
Getting Around
- While downtown Baton Rouge is walkable, a vehicle is recommended to explore the rest of the city.
Culinary Delights
- Mid-City and Southdowns Restaurants: Explore the local culinary scene in these vibrant neighborhoods.
- Brewery and Distillery Tours: Visit places like Three Roll Estate, Tin Roof Brewing Co., and Baton Rouge Distilling for behind-the-scenes tours and tastings.
Outdoor Activities
- BREC Parks: Rent kayaks, picnic, or hike in one of Baton Rouge's sprawling parks.
Events and Festivals
- Check out the city's calendar for live concerts, festivals, and holiday light shows, which offer a unique Louisiana experience.
By sharing these attractions and tips, you can help your guests make the most of their visit to Baton Rouge and enjoy the rich history, vibrant culture, and natural beauty the city has to offer.
Practical Tips to Run a Successful Short Term Rental Business in Baton Rouge, Louisiana
To ensure a smooth and profitable short-term rental business in Baton Rouge, Louisiana, several practical tips can make a significant difference. Here are some key considerations:
Noise Regulations and Quiet Hours
Inform your guests about quiet hours and noise regulations to maintain a peaceful environment and avoid potential violations. Include this information in your listing and house manual to set clear expectations.
Creating a Comprehensive House Manual
Develop both digital and physical house manuals that include essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This helps guests navigate the property easily and reduces the likelihood of misunderstandings.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with detailed instructions on how to access the property, along with photos of the entrance and any specific steps they need to follow.
Clear Parking Instructions
Ensure that parking instructions are clear and accompanied by photos to help guests identify designated parking spaces. This is particularly important given the parking requirements of 1 off-street space per bedroom for whole-home rentals, as mandated by Baton Rouge's regulations.
By implementing these strategies, you can enhance the guest experience, reduce potential issues, and maintain compliance with local regulations, ultimately contributing to the success of your short-term rental business in Baton Rouge.
Here is a brief list of house cleaning providers in Baton Rouge, Louisiana:
House Cleaning Providers in Baton Rouge, LA
The Maids
- Offers 22-Step Cleaning Process, environmentally preferred products, and a 100% satisfaction guarantee.
- Services include loading the dishwasher, taking out the trash, and making beds.
- Serves Baton Rouge, Gonzales, Denham Springs, Prairieville, and the Country Club of Louisiana.
- Contact: (225) 755-8383.
The Cleaning Authority
- Uses a Detail-Clean Rotation System for thorough and deep cleaning.
- Offers free in-home estimates, environmentally friendly cleaning products, and fully bonded and insured services.
- Serves Baton Rouge, Shenandoah, Westminster, and surrounding areas.
- Contact: (225) 399-4485.
Geaux Maids
- Provides deep house cleaning services, standard house cleaning, and other specialized cleaning services.
- Uses bio-friendly cleaning solutions and offers transparent flat-rate pricing.
- Serves Baton Rouge, Baker, Central, Denham Springs, Gardere, Shenandoah, Zachary, Prairieville, and Port Allen.
- Contact: (225) 725-9824.
CottageCare
- Offers professional house cleaning services starting at $113, with no contracts or rescheduling fees.
- Uses eco-friendly products and provides a money-back guarantee.
- Serves the Baton Rouge area.
- Contact: (225) 753-0250 or (225) 766-8778.
Short-Term Rental Management Fees in Baton Rouge, Louisiana: A Comprehensive Guide
In Baton Rouge, Louisiana, the fees for managing short-term rentals, such as those listed on Airbnb or Vrbo, can vary significantly depending on the level of service provided. Typically, these fees range from 10% to 30% of the rental revenue. Full-service management, which includes comprehensive tasks like guest communication, marketing, pricing optimization, and maintenance, tends to be on the higher end of this spectrum, often starting at around 15% to 20% of the revenue.
Basic services, which might only include tenant placement or minimal management, can be less expensive but still fall within this range. Additional fees may apply for services such as cleaning, repairs, and design enhancements. For instance, some management companies charge a separate cleaning fee that they pass on to the guests, while others might include it in their overall management fee.
Understanding these fee structures is crucial for property owners to ensure they are getting the best value for their investment while complying with local regulations, such as the mandatory registration and tax requirements in Baton Rouge.