Danae Columbus: Problems with short-term rentals persist

While the new short-term rental rules should better control the industry in New Orleans, problems will always exist. No matter how diligently the mayor and City Council strive to craft policies that address the very real concerns of residents, illegal operators who are trying to make a quick buck and bad actors with licenses who just don’t care will continue to give law-abiding operators – and the industry — a bad name.

Some of these bad actors are among the city’s leading citizens who have stumbled on whole-house STRs as a good way to maximize the value and profitability of real estate investments. STR platforms such as Airbnb and Home Away have been messaging their landlords to determine who meets the city’s revised requirements. The platforms are supposed to remove unlicensed operators beginning Dec. 1, when the new rules go into effect.

City officials shouldn’t expect that to happen quickly. The platforms are interested in maintaining their level of bookings which could fall if available inventory drops.

Under the new rules, a short-term rental in a residential neighborhood is only available to owner-occupied properties. It would be easy for a couple who owns two buildings or even three – if they have a college-age or older child – to get the same number of licenses and claim that one “owner” resides in each of the buildings.

An Uptown lawyer once “gave” 51% ownership of a building in Esplanade Ridge to his foreign-born cleaning lady so he could operate with the license in her name. Even under the new rules, many licensed residential properties could become whole-house STRs, especially during special events like Mardi Gras or Jazz Fest.

The city will never have enough enforcement officials to figure out who is sleeping where. It takes vigilant neighbors to keep a watchful eye and be willing to report offenders. Those neighbors might be especially active in the highly desirable Garden District and most of the French Quarter, where STRs have been banned entirely.

The problems with operators in mixed use and commercial buildings are much different.  When guests know an owner or manager is present, they tend to behave better. When the guests are unattended, they have no vested interest in taking care of the host’s property, which can lead to high maintenance and repairs. One property owner who leases his building through Sonder, the STR management company, has had to make numerous repairs to his million dollar property in less than a year.

For some reason, many visitors think nothing of having wild parties all night long, getting absurdly drunk, fighting in the streets, hurling racial epithets and cursing their fellow guests. Civility goes out the window. If such a group has rented a stand-alone STR, it is the surrounding residents who bear the brunt of this behavior.

On my block, there are four licensed commercial STRs — and a fifth on the way — with no onsite manager. Three of them are stand-alone buildings that legally accommodate 10 or more guests. On several occasions, my neighbors have called the police when the party has gotten out of hand.  One neighbor regularly sleeps with ear plugs to block out the commotion.

It’s not just the noise but also the piles of trash — whether beer cans and cigarette packs left on the steps or pizza boxes and liquor cases on the sidewalk. I’ve seen caterers deliver cases of wine and multiple chafing dishes of hot food. I’ve seen front doors ajar with signs posted for guests to come on in. I’ve even found the remains of a shrimp boil dumped on the curb.

Perhaps a better solution for commercial STRs is create a special set of fines for rogue guests or unsanitary conditions and even a hotline where neighbors could register complaints.  Calling 311 on the weekend or at night isn’t really effective. And the police should be solving crimes not responding to STR complaints.

Vacation trends show that friends and family prefer to stay together when they travel. Property owners have a legal right to make a profit from their real estate. Voters just approved a new tax on STRs that will primarily fund New Orleans infrastructure. Sustainable tourism is important. So is the right of New Orleans residents to enjoy the quality of life of their neighborhoods.

Danae Columbus, who has had a 30-year career in politics and public relations, offers her opinions on Thursdays. Her career includes stints at City Hall, the Dock Board and the Orleans Parish School Board and former clients such as District Attorney Leon Cannizzaro, City Councilman Jared Brossett, City Councilwoman-at-large Helena Moreno, Foster Campbell, former Lt. Gov. Jay Dardenne, former Sheriff Charles Foti and former City Councilwomen Stacy Head and Cynthia Hedge-Morrell. She can be reached at swampednola@gmail.com.