Daily Regulatory Notes 10/2/2024

New Orleans, LA

Drew Hawkins from Biz New Orleans, spoke with industry professionals, community members, and council member JP Morrell to get their take on what NOLA should do next when regulating short-term rentals.

Allen Johnson, a Faubourg Marigny resident, describes the changes he’s witnessed in the neighborhood since 2016.

“The explosion of short-term rentals in our neighborhood has pushed people out of the historic core, further and further away from their jobs, and we’ve been losing residents,” Johnson said. Short-term rentals (STRs) are any rental less than 30 days. They’re often advertised and rented through sites like Airbnb and Vrbo.

“Short-term rentals have become like a lot of the tourism economy,” said Andreanecia Morris, executive director for HousingNOLA, a 10-year partnership between the community leaders, and dozens of public, private and nonprofit organizations working to solve New Orleans’ affordable housing crisis. “Most of the direct benefits, most of the sales tax and other benefits, the financial benefits that the city can reap, instead of going back into the community, those funds are going back into the tourism industry.”

Councilmember Morrell

“When STRs are allowed to proliferate without density restrictions or adequate safeguards, they have deleterious impacts on quality of life,” said City Councilmember JP Morrell, who proposed fining STR sites and ending the exemption program. “Entire city blocks have been transformed from long-term housing to hotels. The commercialization of residential spaces has displaced families when landowners decide an STR is more lucrative than a long-term tenant.” 

Texas
A new trend sees the cartels using short-term rentals like Airbnb properties as stash houses for illegal immigrants. A recent bust in El Paso found 13 illegals being held in an Airbnb property.

Law enforcement is warning Airbnb and other rental property owners to be aware of who they rent to, especially in these border regions. But Avila notes there is no easy way to crack down on this behavior. "It's very hard to determine if the owner had knowledge of criminal activity when they rented it out," he says. "So it's a major concern."Crowded House: Cartels Using Short-Term Rentals - NewsRadio 740 KTRH

Dallas, TX

The Dallas Morning news has published an editorial from Lisa Siever, a member of the Dallas Short-term Rental Alliance. 

How do we get things back on track? The ban is obviously not working. Dallas should get rid of it. Reinstate the original registration ordinance without amendments and negotiate agreements with STR platforms for direct collection of hotel occupancy taxes. Short-term rentals aren't going away. They are the preferred hospitality choice for travelers seeking an affordable, authentic experience. - Dallas STR ban isn’t working - The Dallas Morning News