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Finch
LSU Fan
Member since Jun 2015
2087 posts

Future of AirBnB in Nola?
I have an opportunity to purchase a very profitable turn key AirBnB in Nola (Near Oak St) but I’m concerned about which way the current administration is looking to go with AirBnB. Anyone have any insight?


TheOcean
Florida State Fan
#honeyfriedchicken
Member since Aug 2004
39117 posts
 Online 

re: Future of AirBnB in Nola?
There's probably a reason why someone would sell a very profitable rental unit


jimbeam
USA Fan
University of LSU
Member since Oct 2011
48767 posts

re: Future of AirBnB in Nola?
Sounds A Little Too Good To Be True


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80
TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
29995 posts

re: Future of AirBnB in Nola?
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.


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Mr.Perfect
LSU Fan
Louisiana
Member since Mar 2013
15411 posts

re: Future of AirBnB in Nola?
Better be one hell of a deal.

Are you local? Got someone for emergency repairs? Ready for the ever increasing taxes? You living there the other 75% of the year that you can’t rent it? Got an alarm system that needs to be registered with the fire department? How will the water bill increases with the tax eat up profits? We are absolutely going to flood again soon. Do you not realize how crappy this city is?


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135
Mr.Perfect
LSU Fan
Louisiana
Member since Mar 2013
15411 posts

re: Future of AirBnB in Nola?
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.


hungryone
LSU Fan
river parishes
Member since Sep 2010
7261 posts

re: Future of AirBnB in Nola?
Dunno if the Air BnB angle is necessary for your numbers to work, but Oak St is still within the university renters’ demand area. So longer term/semester rentals are still very much in demand.


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11
fatboydave
LSU Fan
Fat boy land
Member since Aug 2004
11558 posts

re: Future of AirBnB in Nola?
NOLA will find a a way to screw you


Jp1LSU
LSU Fan
Key West
Member since Oct 2005
954 posts

re: Future of AirBnB in Nola?
AirBnB is still very illegal where I live. You have to have a transient license to rent out anything for less than 30 days. The state of Florida is working on legislation to change that, but the county I live in is working very hard to prevent the state from allowing short term rentals to everyone.


Tiger Prawn
LSU Fan
Member since Dec 2016
8996 posts

re: Future of AirBnB in Nola?
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.


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20
Bayou Sam
LSU Fan
Istanbul
Member since Aug 2009
5899 posts

re: Future of AirBnB in Nola?
What makes you think they are going to crack down hard on the 90-night rule?


Stiles
New Orleans Saints Fan
Member since Sep 2017
505 posts

re: Future of AirBnB in Nola?
It's a law that can make a broke city money through fines.


Bayou Sam
LSU Fan
Istanbul
Member since Aug 2009
5899 posts

re: Future of AirBnB in Nola?
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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McLemore
Member since Dec 2003
20082 posts

re: Future of AirBnB in Nola?
quote:

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


I own 3.25 (the .25 is an in-law suite in our house) rental properties and I totally understand why someone would sell. I'm preparing to go down to one property and I'll live in it with just my wife and kids. Over it all.


baldona
Auburn Fan
Florida
Member since Feb 2016
6989 posts

re: Future of AirBnB in Nola?
quote:

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


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.


lsufball19
LSU Fan
Franklin, TN by way of Memphis, TN
Member since Sep 2008
27894 posts

re: Future of AirBnB in Nola?
quote:

AirBnB is still very illegal where I live. You have to have a transient license to rent out anything for less than 30 days. The state of Florida is working on legislation to change that, but the county I live in is working very hard to prevent the state from allowing short term rentals to everyone.

How recent is this? I've been renting air bnbs in Florida every year for years. Or are these licenses easy to come by?


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hungryone
LSU Fan
river parishes
Member since Sep 2010
7261 posts

re: Future of AirBnB in Nola?
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 shit, 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.


baldona
Auburn Fan
Florida
Member since Feb 2016
6989 posts

re: Future of AirBnB in Nola?
quote:

It's certainly not just "people with money" complaining about short-term rentals in NOLA


Lol, well I certainly agree. But generally it takes either hoards complaining or a few of the right people.

I simply meant that somewhere like NOLA, you could have a million dollar home of someone with influence next to a duplex or quadplex where one or more is rented as an Airbnb. That's the type of situation where you piss off someone of influence that makes things happen. Many municipalities you wouldn't necessarily have nice homes and communities right next to crappy homes and right next to busy tourist areas.

To answer the other person, every municipality, state, etc. has their own rules. We are talking about NOLA here, which has different laws than Louisiana which are different than Florida.


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Bayou Sam
LSU Fan
Istanbul
Member since Aug 2009
5899 posts

re: Future of AirBnB in Nola?
quote:

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.


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


baldona
Auburn Fan
Florida
Member since Feb 2016
6989 posts

re: Future of AirBnB in Nola?
quote:

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


Yeah but Airbnb isn't the only player out there, there's a bunch of booking companies. Furthermore, there's ways to work around Airbnb. Airbnb also sucks at collecting the right tax. They know this too, they just don't care.

Airbnb will only let you rent for 90 days a year on their website right? So for the summer you list your property on Airbnb, the fall you list it on vrbo, and the spring you list it on TripAdvisor.

Eta: when I went to London this past year they had the Airbnb 90 day rule. We needed to adjust our dates and there was availability. He told us he had already hit his 90 day limit, but we could pay him directly for the extra nights.
This post was edited on 3/6 at 9:12 am


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