So You Want a Short-Term Rental in New Orleans. Here’s What We Learned.
- Elisa Cool Murphy
- 1 day ago
- 5 min read
Updated: 13 hours ago
TL;DR
Yes — legal commercial short-term rentals still exist in New Orleans, and yes, there is currently still a path to purchase and operate existing compliant commercial STR properties.
The simplest path right now is generally:
Find an existing legal commercial STR in good standing
Work with people who understand the current process
Understand that ownership changes involve a new application process, not a permit “transfer.”
Prepare for a process that is manual, nuanced, and timing-sensitive
Build the right team around you — from purchase to licensing to operation
That’s exactly why we hosted this conversation.
If you’ve tried researching short-term rentals in New Orleans recently, you’ve probably walked away more confused than informed.
One Google result says one thing. The city website says another. A YouTube video from four years ago says something else entirely. Even AI-generated summaries conflict with one another.
And frankly, after representing commercial STR condos downtown and fielding dozens of buyer conversations ourselves, we understood why.
People weren’t asking:
“Can this make money?”
“Is New Orleans a tourism market?”
“Will people visit?”
They were asking:
“Can you even still do this legally?”
“What happens when ownership changes?”
“Are permits still being issued?”
“What’s actually true?”
So we hosted a small panel discussion at The Alexandre at 336 Camp Street in downtown New Orleans, where we currently represent 16 remaining commercial STR condo units.
The goal was not to sell people on STRs.
The goal was clarity.
We invited Ron Loesel of Zach Smith Consulting, a consultant actively helping navigate commercial STR ownership transitions and permitting pathways in New Orleans, along with property managers and local professionals working in the space right now.
And the first thing Ron said surprised the room.
“I am anti-short-term rental. I am anti illegal short-term rentals.”
He went on to explain that many of the problems associated with STRs in New Orleans came from bad actors — operators who ignored rules, neglected properties, disrupted neighborhoods, and created distrust around the industry as a whole.
But he also made another point clearly:
Good operators exist.
And right now, many compliant owners and buyers are struggling to navigate a process that has become increasingly difficult to interpret.
Commercial STR Licenses Are Still Happening
One of the biggest misconceptions we hear is that commercial STR licenses are no longer possible in New Orleans.
That is not accurate.
What is accurate is that the process has become more complicated, more manual, and more case-specific than many buyers expect.
According to Ron, one of the major areas of confusion involves ownership transfers of existing commercial STR properties.
“There is no transfer of an STR license. What happens is a new application under the existing non-conforming use.”
That distinction matters.
In practical terms, when a commercial STR property changes ownership, the prior permit does not simply transfer automatically to the buyer. A new application process begins under the property’s existing non-conforming use status.
That process can involve downtime, manual filings, and coordination through multiple departments.
It is not always straightforward.
But importantly, existing legal commercial STRs can still be purchased, and there is currently still a pathway for buyers who want to enter this space through existing compliant inventory.
That was one of the clearest takeaways from the evening.
Why the Process Feels So Difficult to Understand
One thing we appreciated about the discussion was that nobody tried to pretend this process is simple.
Ron spoke candidly about the challenges city staff have faced over the last several years, including:
staffing shortages
COVID disruptions
the cyberattack
budget limitations
increasing administrative complexity
“The STR office is constantly fielding complaints from neighbors while also processing permits and applications.”
He also explained that because new commercial STR pathways have narrowed significantly, many applications now require manual assembly and internal review instead of a clean online submission process.
In other words:
If you feel confused, you are not imagining it.
Existing Commercial STR Inventory Matters More Now
Another major takeaway from the conversation was the increasing importance of existing compliant commercial STR inventory.
New Orleans’ STR regulations have evolved significantly over the last several years, and future legislation is expected to tighten further.
“The days when someone could simply be in an HUMU district and apply for a permit are over.”
Ron also noted that future legislation is unlikely to become less restrictive regarding commercial STRs.
That reality creates an important distinction between:
existing compliant commercial STR properties
and
attempting to create entirely new STR opportunities from scratch
As regulations tighten, existing legal inventory may become increasingly valuable simply because there is less of it.
“That reality makes existing compliant commercial STRs more valuable. Supply and demand.”
So What’s the Simplest Path Right Now?
Ron’s answer was direct.
“The best strategy for someone entering the market right now is generally to purchase an existing permitted commercial STR.”
That does not mean every property is viable.
And it certainly does not mean that every address in New Orleans is suitable for STR use.
One of the clearest themes from the conversation was that New Orleans is highly block-by-block, district-by-district, and use-by-use.
What works in one area may not work in another.
That’s part of why experienced guidance matters.
Another Point Worth Mentioning
At the panel, Bob Bergeron of Crescent Title also discussed something many buyers — especially high-income professionals — may not realize:
Commercial STR ownership can intersect with broader business and tax planning strategies.
That does not mean every property makes sense for every buyer.
But it does mean these conversations often go far beyond tourism or Airbnb income alone.
For many buyers, the larger questions involve:
long-term ownership strategy
business structure
operational management
timing
and risk tolerance
What We Took Away From Hosting This Conversation
We did not host this event because we think short-term rentals are simple.
We hosted it because too many people were receiving fragmented, outdated, or conflicting information.
And after dozens of buyer conversations, we understood the hesitation.
Truthfully, we shared some of it ourselves.
What we learned is this:
commercial STR ownership in New Orleans is still possible
purchasing an existing legal commercial STR and keeping it operating is still possible
the process is nuanced
existing compliant inventory matters
good standing matters
timing matters
and clarity matters more than ever
Most importantly, we learned that buyers do not necessarily need certainty about the future.
But they do need honest, current information from people actively navigating the process today.
We’ll continue sharing clips, FAQs, and takeaways from the discussion in the coming weeks.
And if you’re trying to understand whether a specific property or opportunity has a viable path, we’re always happy to point you toward current resources and people actively working in this space.
You can view the currently available legal commercial STR units we represent at The Alexandre here:https://www.coolmurphy.com/alexandre
We’re here to help remove obstacles, provide clarity for our clients, and approach these conversations thoughtfully while remaining mindful of the community we love.
Presented by Cool Murphy Real Estate + Hospitality New Orleans with Ron Loesel, Zach Smith Consulting
Special thanks to:
Crescent Title
Big Easy Management
Book NOLA
and the operators, property managers, and attendees who contributed thoughtful questions and perspective throughout the evening.
Meet Desiree McSwain and Elisa Cool Murphy Hosts of the event described above, & Co-Listing Agents of the Alexandre.
At Cool Murphy Real Estate, our mission is clear: to revolutionize the real estate experience. We're not just stepping away from the crowd; we're charting an entirely new course.
Here, every interaction, every decision, is a step towards something greater – a better experience for our clients, our agents, and our community.
When we launched our business in the worst market in 30 years, some called it crazy. But in this so-called madness lies our strength. We view the origin of our brokerage during difficult times as a testament to our dedication, our resilience, and our willingness to face strong headwinds with unwavering determination, much like the spirited soul of New Orleans itself.
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