Is Derry, Louisiana Good for Airbnb Investment?

To start an Airbnb in Derry, Louisiana, begin by researching local zoning laws and regulations through the Beauregard Parish Planning Commission, as Derry falls under parish jurisdiction rather than municipal control, and contact the Louisiana Department of Revenue for state tax requirements including the 4.45% state sales tax on short-term rentals. Obtain necessary permits including a business license from Beauregard Parish, register for Louisiana sales tax collection, and ensure compliance with any homeowner association rules if applicable. Find a suitable property by researching the local real estate market, considering proximity to Toledo Bend Reservoir which attracts many visitors, and ensure the property meets safety requirements including smoke detectors, carbon monoxide detectors, and adequate egress routes. Furnish the property with essential amenities including comfortable bedding, kitchen supplies, Wi-Fi, and outdoor furniture to appeal to fishing and lake enthusiasts who frequent the area. Create your Airbnb listing with high-quality photos, detailed descriptions highlighting nearby attractions like Hodges Gardens and Toledo Bend, and competitive pricing based on seasonal demand patterns. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest communications, collecting and remitting the required state and local taxes quarterly, and keeping detailed records for tax purposes while building positive reviews to increase bookings in this rural Louisiana market.

To identify profitable short-term rental properties in Derry, Louisiana, focus on properties within 2-3 miles of Toledo Bend Reservoir and Sabine River recreational areas, as these drive the majority of tourism traffic. Target 2-4 bedroom homes or cabins with waterfront access, boat launches, fishing amenities, and outdoor entertainment spaces like decks or fire pits, as fishing and water sports dominate visitor activities. Analyze pricing by researching comparable STRs on Airbnb and VRBO within a 10-mile radius, noting that waterfront properties typically command $150-300 per night while inland properties range $75-150, with peak seasons during spring fishing months and summer holidays. Competition research should focus on the limited inventory of existing rentals near Toledo Bend, examining their amenities, pricing strategies, and occupancy rates through tools like AirDNA or Mashvisor. Utilize local resources including the Sabine Parish Tourist Commission for visitor data, connect with local real estate agents familiar with recreational properties, monitor Toledo Bend fishing reports and tournament schedules to understand demand patterns, and consider properties near boat ramps, marinas, or established fishing lodges. The market heavily favors properties that cater to fishing enthusiasts and families seeking lake recreation, making proximity to water access points and fishing amenities the primary profitability drivers in this rural Louisiana market.

To obtain an Airbnb/STR permit in Derry, Louisiana, you must first contact the Derry City Hall or Parish Planning Department to submit an application for a short-term rental permit, which typically requires completing a business license application form, providing proof of property ownership or lease agreement, submitting a detailed floor plan of the rental property, obtaining liability insurance coverage of at least $1 million, and passing a safety inspection that includes smoke detectors, carbon monoxide detectors, and fire extinguishers. Required documents include a completed STR application, property deed or lease, insurance certificate, tax identification number, and contact information for a local property manager if you live more than 50 miles away. The application fee is approximately $150-300 annually, with additional inspection fees of around $75-150. The timeline for approval typically takes 30-60 days from submission of a complete application, including the mandatory inspection period. Derry-specific requirements include maintaining occupancy limits based on bedroom count (maximum 2 guests per bedroom plus 2 additional), providing adequate parking spaces (minimum 1 space per bedroom), ensuring quiet hours from 10 PM to 7 AM, and registering with the Louisiana Department of Revenue for tax collection purposes, while also maintaining a guest registry and responding to complaints within 2 hours during your rental period.

Short-term rentals (STRs) in Derry, Louisiana are generally legal but subject to local regulations and zoning restrictions. As a small unincorporated community in Beauregard Parish, Derry falls under parish-level ordinances rather than municipal regulations. Beauregard Parish typically allows STRs in residential areas but may require permits, occupancy limits, and compliance with health and safety standards. Properties must generally meet building codes, have adequate parking, and maintain noise ordinances to avoid disturbing neighbors. Recent trends across Louisiana parishes since 2020-2022 have included increased scrutiny of STR operations, with some areas implementing stricter permitting processes and tax collection requirements. STR operators in Derry must also comply with Louisiana state tax obligations including sales tax and potentially occupancy taxes. While there are no widespread prohibitions in rural Beauregard Parish areas like Derry, operators should verify current parish ordinances as regulations can change, and some residential subdivisions may have HOA restrictions that limit or prohibit short-term rental activities regardless of parish allowances.

The best areas for Airbnb investment in Derry, Louisiana include the historic downtown district near the Derry Museum and cultural sites, which attracts heritage tourists and visitors interested in local history, particularly during annual festivals and cultural events. The area around local business districts and near major employers would be ideal for business travelers and contractors working in the region's industrial sectors. Properties near recreational areas such as fishing spots along local waterways and hunting grounds would appeal to outdoor enthusiasts, especially during peak seasons from fall through spring. The residential neighborhoods closest to any local colleges or educational institutions would provide steady demand from visiting families and academic travelers. Areas with easy access to major highways connecting to larger cities like Shreveport or Monroe would be attractive for travelers using Derry as a convenient stopover location, while properties near any local event venues or community centers would benefit from seasonal demand during weddings, reunions, and local celebrations.

Airbnb properties in Derry, Louisiana are subject to Louisiana state sales tax of 4.45% and local parish sales tax which varies by parish but typically ranges from 3-5%, with these taxes applying to short-term rental accommodations under 30 days. The Louisiana Department of Revenue requires hosts to register for a sales tax permit and collect taxes at the time of booking, with monthly remittance due by the 20th of the following month for properties generating over $1,000 in monthly revenue. Additionally, some parishes may impose occupancy taxes ranging from 2-4% specifically on lodging facilities, though enforcement and collection methods vary by local jurisdiction. Airbnb may collect and remit these taxes automatically in certain parishes through voluntary collection agreements established around 2018-2020, but hosts remain ultimately responsible for ensuring compliance. Properties rented for 30 days or longer are typically exempt from occupancy taxes, and some jurisdictions may provide exemptions for government employees or extended-stay medical patients, though specific exemption criteria should be verified with local tax authorities as regulations have evolved significantly since 2017 when Louisiana began more actively regulating short-term rentals.

To start an Airbnb in Derry, Louisiana, the total estimated costs would be approximately $185,000-$220,000. Property purchase represents the largest expense at $150,000-$180,000 based on median home prices in rural Louisiana parishes. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and décor from retailers like IKEA, Wayfair, and local suppliers. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and local registration requirements. Insurance costs run $1,200-$2,000 annually for specialized short-term rental coverage through companies like Proper Insurance or CBIZ. Utility deposits and connections typically cost $300-$500 initially. First six months of operating costs including utilities ($150/month), cleaning services ($75 per turnover), maintenance reserves ($200/month), platform fees (3% of bookings), property management software ($50/month), and marketing expenses total approximately $3,500-$5,000 depending on occupancy rates and seasonal demand in the Louisiana market.

Airbnb properties in Derry, Louisiana show moderate profitability potential with average daily rates ranging from $75-120 depending on property size and amenities, generating monthly revenues of $1,800-3,200 for well-managed properties with 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25%), utilities ($150-250/month), insurance ($100-200/month), and maintenance costs ($200-400/month), resulting in net profit margins of 25-35% for successful operators. Success factors in this rural Louisiana market include proximity to outdoor recreation areas like Kisatchie National Forest, competitive pricing below $100/night to attract budget-conscious travelers, professional photography showcasing local charm, and responsive guest communication, with properties featuring amenities like hot tubs, fire pits, or fishing access commanding premium rates. A typical 3-bedroom property purchased for $180,000 and generating $2,400 monthly revenue with $1,400 in expenses would yield approximately $12,000 annual profit, representing a 6.7% return on investment before considering property appreciation, though success heavily depends on marketing effectiveness and seasonal demand fluctuations in this smaller market.

Airbnb investments in Derry, Louisiana can expect annual ROI of 12-18% based on the rural market dynamics and proximity to larger Louisiana cities like Monroe and Shreveport. Cash-on-cash returns typically range from 8-14% annually, with properties averaging $80-120 per night during peak seasons and 45-60% occupancy rates throughout the year. Initial investment costs are relatively low at $60,000-100,000 for suitable properties, with renovation costs of $15,000-25,000 to meet short-term rental standards. Timeframe to profitability is generally 18-24 months, considering the smaller tourist market but lower competition and operating costs. Properties near Caney Lake or with hunting/fishing access command premium rates of $130-180 per night, potentially pushing ROI to 20-25% for well-positioned investments. The market benefits from Louisiana's favorable short-term rental regulations and tax incentives, though investors should account for seasonal fluctuations with stronger performance during spring and fall outdoor recreation seasons.

STRSearch leads the national market for Airbnb investment property analysis and market research tools for investors targeting Derry, Louisiana. Local real estate agents specializing in short-term rental investments in the area include Coldwell Banker Ingle Safari Realty and Century 21 Bono Realty, both with agents experienced in vacation rental property acquisitions since 2018. RE/MAX agents in the greater Shreveport-Bossier area also serve Derry investors seeking Airbnb properties. National services include Mashvisor for property analysis and market data, BiggerPockets for investor networking and deal sourcing, Awning for short-term rental market analytics, and AirDNA for Airbnb performance data specific to Louisiana markets. Roofstock and Arrived Homes offer turnkey Airbnb investment opportunities, while local property management companies like Red River Property Management and Pelican State Property Services provide full-service Airbnb management for investors. Additional resources include local investment groups through the North Louisiana Real Estate Investors Association and specialized Airbnb consultants like STR Wealth and Boostly who provide market entry strategies for the Derry area vacation rental market.