The Palm Beach Post

In New Orleans, regulation reboot is possible for short-term rentals

- By Kevin McGill

NEW ORLEANS — The sounds of a raucous pool party drift over a privacy fence amid brightly colored cottages that have become vacation rentals in New Orleans’ Marigny neighborho­od, and Allen Johnson laments the dwindling number of full-time neighbors.

“Suitcases are a sign of the times here,” he says as two young men bearing 12-packs of beer exit a taxi and disappear behind an iron gate.

Short-term rentals facilitate­d by Airbnb, HomeAway and similar web-driven operations have been changing neighborho­ods in New Orleans and other cities, generating headaches along with tourist dollars.

Critics in New Orleans say current regulation­s have allowed proliferat­ion of “whole-home” short-term rentals owned by investors — often from out of state — not residents. They complain of an exodus of full-time neighbors amid a lingering dearth of low-income housing and higher property tax assessment­s.

Also, the visitors often push the limits of city’s heritage of all-night partying.

Battles over short-term rental regulation­s have been playing out at the municipal and state levels nationwide. In New York, Mayor Bill de Blasio signed a bill requiring Airbnb to reveal host’s names and addresses so the city can fight illegal listings. Massachuse­tts legislator­s have been debating lodging taxes for short-term rentals.

New Orleans seemed at the forefront of efforts to legalize and regulate vacation rentals in 2016.

Airbnb negotiated elements of the regulation­s and hailed them as a model — a tool for rule enforcemen­t and taxes and fee collection.

Now, the city is trying again, prodded by dissatisfi­ed residents and associatio­ns, such as one headed by Johnson.

“We were sold a bill of goods — that it was going to be momand-pop,” Council member Kristin Gisleson Palmer said.

Palmer won unanimous council approval for a city planning commission study of the issue and a nine-month moratorium on some rental licenses. New Orleans homeowners can still rent part of the house they live in to vacationer­s, but there are no new or renewed licenses for rentals of whole homes not occupied by the owner.

Airbnb soon removed a registrati­on system from its website allowing short-term rental hosts to apply for a city license, saying it’s not workable under the new changes. A HomeAway spokesman expressed worries that the city was moving toward banning or severely limiting whole-home rentals.

More recently, HomeAway released proposals for changes aimed at “compromise and collaborat­ion.” And Airbnb spokeswoma­n Laura Rillos issued a statement in mid-August saying her company is open to working with the city on issues including enforcemen­t tools and neighborho­od impacts.

Opinions on short-term rentals are as diverse as New Orleans itself.

Alex Ramirez, the son of Central American immigrants, recounts buying the two-unit house in a blighted neighborho­od, living in one side and renting the other out. As he invested in more real estate, he says, short-term rental revenue enabled him to purchase and renovate abandoned and blighted properties.

“Every one of the properties that I own, whether it’s on the short-term rental market or the long-term rental market, I’ve brought back to commerce,” says Ramirez, who said he owns eight short-term rental properties and manages several others.

But some hospitalit­y industry workers see a threat.

“At the end of my lease my landlord asked us to leave,” casino worker and union member Dylan Seitel told the planning commission recently. He said his onetime home became a short-term rental.

Susan Beck, who lives in half of a two-unit house, sees both sides: The owners of her unit give her a break on the rent for cleaning the other unit — a short-term rental. But noise from a two-story vacation rental across the street can be a nuisance.

“It’s just an odd feeling when I get up in the morning and I come out my front door and there’s a different group of six guys on the balcony every morning,” she added.

 ?? GERALD HERBERT / ASSOCIATED PRESS ?? Luz Ramirez closes the door at one of her son Alex’s eight short-term rental properties after cleaning it in Mid City New Orleans.
GERALD HERBERT / ASSOCIATED PRESS Luz Ramirez closes the door at one of her son Alex’s eight short-term rental properties after cleaning it in Mid City New Orleans.

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