We loved Airbnb… until it became a source of gentrification in New Orleans, disturbing the delicate balance of tourism and local life in neighborhoods throughout the city.
I can tell you first-hand that Airbnb seemed like a dream come true.
In a lesser-known area of the city (Carollton), my husband and I found a property that was not ideal for corporate leasing, but had beautiful potential.
We spent a year bringing it out of a sad decline, and up and down the street we met all the neighbors… who were concerned that we would be renting to college kids, or stacking the double (with two apartment units, eight bedrooms total), with what had formerly been a nightmare of room-by-room rent.
We explained our corporate leasing model to them – furnishing and outfitting each side as a four bedroom apartment, and leasing it to film crew members, travel nurses, business relocations… our well-known niche, which always brings such quiet and orderly renters to stay.
Our big concern was that it is not downtown, where our previous units had been… could visitors embrace this quiet, family-oriented area, with Palmer Park as its only amenity in walking distance?
As it turns out, we never found out.
We completed one side of the double, and it was gorgeous! We were dying to get some rent rolling in, but that was impossible with the daily construction mess in the driveway and the noise of our crew working.
It was our most outspoken critic across the street who toured the finished side and, completely won over by our efforts, suggested we should rent it out for Mardi Gras.
We were stunned. Of all the things we’d considered, a “party rental” was not one of them.
Then again… our budget was stretched in those final phases, and we craved any form of income to get us through the last few months of renovation.
That’s how we became an Airbnb. We were truly a beloved addition to the neighborhood. Our guests, because of the “non-party” location, defined the vibe of the rentals… Tulane parents, former New Orleans residents visiting family, patients here for medical treatments at nearby Ochsner hospitals… we never anticipated the many reasons people might want to be in this area… but boy, they did!
Money poured in from the high nightly rates of a four bedroom, beautifully appointed home. Soon, two sides with four bedrooms each were available to rent, and we were thrilled to find this property a little gem of profit, good friendships in the neighborhood, and a huge success all the way around.
Our neighbors were so enthused about the improvement it made to the block, they often chatted with our guests and acted as ambassadors for the city, recommending things to do, helping with directions and logistics. There was no flaw in the situation from any angle. One of the neighbors even sent me for the interview at Holy Name of Jesus for our second grader, which has been the foundation of his childhood and the source of so many wonderful memories for us.
Then… the city changed the short term rental laws. Just like that. In the blink of an eye, this entire project was “illegal,” even with our license. We had until the end of the year to come up with new business models, or face huge fines and the possibility of having to sell.
Hurricane Ida brought emergency responders from FEMA and insurance claims adjusters, so we were able to rent on a month-to-month basis for a while, but we couldn’t keep it rented consistently that way, so eventually, we sold it to someone relocating from San Francisco. He would live on one side and rent the other. A bittersweet end for our special little Airbnb.
So what caused all this? Were we gentrifiers? Did we make housing unaffordable in the area?
No. I can say with certainty this was not the case for us, and we still enjoy friendships in the neighborhood. But that wasn’t the case with Airbnb, VRBO and other vacation rental platforms that drove the renaissance of some areas of New Orleans.
It was a gold rush, and people from out of state, even large corporations, were buying up old properties, not to “flip,” but to turn into vacation rentals throughout the city. There were suddenly THOUSANDS of them, and in many neighborhoods, the demographic became unrecognizable. Twelve houses in a row might have nightly turnover, residents had no idea who was coming and going on their block…
And worst of all, the properties were re-assessed for taxes at huge increases, and property values soared beyond affordability for those who wanted to buy to live in New Orleans. In many cases, service industry workers were forced outside the city to live, and generational locals, with paid-in-full properties, now struggled to afford to keep their homes.
Elderly people were most affected, but so were average citizens and hospitality workers, along with local hotels. New Orleanians began to hate Airbnb, and an affordable housing crisis became worse and worse until public opinion finally forced City Hall to do something about it.
I created NESTinNOLA for the purpose of filling the gap between property management of traditional monthly rentals, to serve those properties who used to be vacation rentals, and now require a different model.
I hope that having this “List-by-Owner” option for furnished rentals will help fill the vacuum created by the Airbnb bubble bust.
This will allow owners to reach a targeted audience not found through realtors with the MLS, or vacation rental platforms. It serves the unique furnished properties that were once in competition with local hotels and the desires of many to live in real neighborhoods.
We can help them find visitors they can get to know as neighbors and fellow residents. We believe that’s what mid-term leasing provides – good for the neighborhood, good for the visitor, and good for the city.
Please share this article with anyone you know who may need direction with a property “in limbo” and looking for help.
Anne Beck, Broker at NOLASinc.
504-812-4702