Future of AirBnB in Nola?

There's probably a reason why someone would sell a very profitable rental unit

The mayor elect(while on the council) voted in favor of regulations that legalized short-term rentals throughout the city.
She did offer an amendment, that didn't pass, that would limited short term rentals to houses that have a homestead exemptions.

In all seriousness go the the city site Here and I suggest you open the brochure at the bottom of the link. They are going to crack down hard on the 90 rentals per year in the near future. Make sure that is part of your business plan if this is residential.

NOLA will find a a way to screw you

The seller is probably trying to get out before the city starts cracking down on that 90 day/year rental rule.

Its not so profitable anymore if you can only rent it out 25% of the year once you've accounted for all the expenses for property tax, insurance, utilities, cleaning and maintenance costs.

What makes you think they are going to crack down hard on the 90-night rule?

But wouldn't the city make more money from the airbnb taxes, combined with the tendency of short-term-rentals to raise rents and home prices, and thus property taxes? On the flip side, the city will have to spend money and resources on enforcement. So it seems like they have a financial interest in letting the 90 day rule "slide", while spending their time on more egregious violations.

I'm more or less playing devil's advocate here, but I also have a financial interest in airbnb in new orleans, so I hope they don't bring the hammer down. At the same time, I'd like to hear strong reasons for thinking otherwise.

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What makes you think they are going to crack down hard on the 90-night rule?

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People with money complaining their neighbor is short term renting. Politics basically. You also have to realize that a high percentage of short term renters are looking to skim and not report rentals, not pay their taxes.

The best idea truly is to allow it by neighborhood, district, etc. As said, short term renting does drive up the prices in general. But it also makes areas less stable, especially traditional nice residential areas. Someone will take a 4000 sq ft house and turn it into 4-5 short term rentals. That can hurt an entire city block as far as resale value, as many people now don't want to live next to that.

It's certainly not just "people with money" complaining about short-term rentals in NOLA. The proliferation of short term rentals in certain neighborhoods are resulting in a housing shortage, which is driving rents sky-high...and pushing lower-wage hospitality workers (bartenders, hotel workers, cooks who work in the city center/FQ) out into the suburban areas....leading to longer, more expensive commutes (NO public transit is shite, regional public transit is an embarrassment of non-cooperation).

In addition, many of the short term renters come to NO to party....so I know folks who live on blocks saturated with Air BnB units who are routinely subjected to loud/obnoxious drunken behavior, vomit on streets and cars, hordes of wandering intoxicated tourists, frequent loud parties. Seriously--the average AirBnB guest to NO is far less well-behaved than, say, Atlanta or DC. Add to that a 19th century street grid/landscape/house spacing, and you've got formerly nice/quiet areas turning into pretty miserable places to live & work.

As a fairly frequent AirBnB user, I see both sides. But I know that I wouldn't want to live directly next door (or above, or below) a short term unit constantly filled with disrespectful visitors.

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You also have to realize that a high percentage of short term renters are looking to skim and not report rentals, not pay their taxes.

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That's part of the deal Airbnb struck with the city government though--airbnb collects the taxes themselves and pays them to the city.