Rental Property Investor · Wakefield, MA · Member since 2016 · 50 posts · 31 votes
I’m interested in any feedback anyone has on short term rentals in New Orleans. I’m looking to rent and then sublet (Airbnb). I currently have 17 in Boston and am looking to start in New Orleans. I’m looking into the commercial short term rental license. I know they’re currently discussing changing the regulations again so I’m not sure if anyone Airbnb’s there and has some advice! Any help is appreciated thanks!
Developer · New Orleans, LA · Member since 2015 · 1k+ posts · 898 votes
7y
@Cassandra Staffieri Your concept will not work in New Orleans. The city has halted all new short term rental permits, and all signs point to the fact that only the owner of the property that lives at the property will be allowed to get a short term rental permit when they resume (if they resume) issuing permits. Additionally, given the STR climate in New Orleans, I doubt you will find a landlord that will rent to you for the purpose of Airbnb.
Professional · Chicago, IL · Member since 2012 · 197 posts · 131 votes
7y
The day i don't have to read @Paul Sandhu and @Luke Carl on a short term rental post will be a great day. They add no value and discourage everyone in doing anything.
Cassandra keep rocking out. I am confident you will figure it out. I do the lease & sublease model in Chicago in many apartments. I do this full time now.
Maybe we can give each-other tips to get into each-others market. I have contacts in A class neighborhoods
Rental Property Investor · Wakefield, MA · Member since 2016 · 50 posts · 31 votes
7y
@Lucas Carl .. I did google it. I like to also ask for peoples experience who have airnbs there. Clearly that hasnt happened. Instead, I’m getting opinions from people who tell me to buy and im doing it wrong. I’m not looking for people to hire me. I do it for myself. And we also clean 42 Airbnb’s in the Boston area for people who rent and own them. No need to hire Evolve around here. They’re popular in the NH, Cape Cod, Vermont area around here.
It is an investment for me. It brings in massive cash flow. Which then in turn will allow me to invest in buying properties faster. A decent 3 family in Boston area typically goes for somewhere between 800K-over a mill. Again, I’m fairly new to the buying property game so I’d rather rent for now. I only have one 2 family in Wakefield which was $600,000. Wakefield is about 30 minutes from Boston and not a good Airbnb market and is better to rent to tenants and doesn’t bring in enough monthly cash flow to save fast to buy more properties. I’d rather rent and Airbnb. I don’t understand why I keep getting the same response from the same people. If you don’t want to deal with the thread then don’t answer. I wish I could delete this thread but BP won’t let me.
Rental Property Investor · Wakefield, MA · Member since 2016 · 50 posts · 31 votes
7y
@Syed Lateef - thank you so much and thank you for your advice! It’s encouraging to hear from someone doing the same thing as me in a different city and state!
Rental Property Investor · Campbell, CA · Member since 2017 · 419 posts · 499 votes
7y
@Cassandra Staffieri I typically stay neutral but when the experts are all saying the same thing there’s probably a good reason for it. I’m not sure why you’re unhappy with those of us pointing out fundamental flaws and offering alternatives to your legislative issues.
You might not like some people on this forum. You might not like some responses you get on this forum. But the experience from some of these people is worth a hell of a lot and to just ignore it because youre locked Int a faIlIng strategy just seems silly.
If you want to repeat this in a new market and repeat getting shut down by the city a few years later it’s no sweat off any of our backs... expect yours.
Don’t take this as ‘hate’. Take this as speaking the truth. Some people here take the time out of their busy days to try and help and we should all be thankful for them even if you disagree with what their opinion is.
Minneapolis, MN · Member since 2018 · 15 posts · 15 votes
7y
Why are so many people being so negative on this post. Cassandra didn't ask for anyone's opinion as to whether or not you thought she could do this, or even if you thought it was a good idea. She only asked if anyone had any advice about STR in the New Orleans area. If you don't have advice in the particular thing she asked about, how about just letting it go? Had she asked "What do you think about me getting started investing in STR's ?" maybe your comments would be appreciated. We all know you guys are smart about your investing but why belittle someone else because her ideas don't fit your mold? She seems to know pretty well what she is doing already, and as she said she is accumulating the profits from this to purchase more properties.
Real Estate Junkie · New Orleans, LA · Member since 2008 · 274 posts · 165 votes
7y
Not sure how much you know about New Orleans but here is the short version... New Orleans is different from just about anywhere else, it looks like a city but it is actually more like one big neighborhood. When you come here you have to be prepared to step back in time. This is a place where families still live close together, when you meet someone for the first time you will be asked where you went to school (and I am not talking University), and outsiders are not exactly trusted. People here are extremely friendly and visitors are treated well, but if you plan on sticking around you best acclimate quickly and whatever you do, do NOT try to change anything. Anyone that attempts to run str's from afar is straight from the devil, even locals that attempt to run more than one are hated. I had one across the street from my own house and I was lucky enough to have awesome neighbors that didn't mind at all, however, I didn't mention to many people that I ran str's because I didn't want to hear all of the terrible things I was doing to rip this city apart. There are huge numbers of people that have fought tooth and nail to stop str's here and they are winning. Mine made VERY good money and I managed to ride the first wave of regulations but the haters didn't stop and the moratorium on licensing left me with two choices, to hold as long-term rentals or sell. I decided to pass on the blessing and I sold to owner occ buyers that were able to carry the license to run as str's.
All that said, there is one way to do it here even as an out of state owner. You have to stick to property that is zoned commercial. The prices are higher but the higher rents can make up the difference. You really have to want to do it though, because you are still going to have the stigma of being an outsider. Neighbors may be touchy and complain to the city about any little thing that guests do and too many complaints can get you shut down, possibly with fines to pay. One thing to keep in mind even with commercial, the number of guests has caps. You are only allowed 2 people per bedroom. Doesn't matter if you have 2 queen size beds in one bedroom, still only allowed 2 people. The max is 5 bedrooms and 10 people. If you try to "look the other way" and quietly allow more than the max number and neighbors complain to the city you can be fined, dragged into court, and the city can even shut your power off.
In a nutshell, unless you have family or some other strong connection to this city, I would strongly suggest anywhere but here.
Real Estate Agent · New Orleans, LA · Member since 2015 · 146 posts · 127 votes
7y
@Kimberly Jones I agree and would add even with the current rules allowing commercially zoned properties to operate STRs, those rules can change at any time provided the right voters (campaign contributors) make enough noise. It's way too shaky of an environment for the long distance STR operator.
Real Estate Agent · New Orleans, LA · Member since 2015 · 146 posts · 127 votes
7y
@Cassandra Staffieri I'm sorry, but what about insurance? Suppose there is a fire caused by a guest or if a guest is hurt from negligence of the owner. LLCs can often be pierced. I'm just curious how you and the property owners are protected insurance.
Real Estate Agent · New Orleans, LA · Member since 2015 · 146 posts · 127 votes
7y
@Cassandra Staffieri Is this an insurance policy designed specifically for STRs that are run by non owner lessees? Does it cover the property owner or is he or she responsible for a separate policy that covers their tenants running an STR business in the property. I'm just trying to wrap my head around the liabilities and such. Sorry for all the questions!
Real Estate Agent · New Orleans, LA · Member since 2015 · 146 posts · 127 votes
7y
@Cassandra Staffieri BTW, The last few insurance renewal conversations that we have had with various insurance companies, they have asked specifically whether we plan on having STR guests in our apartments.
Rental Property Investor · Denver, CO · Member since 2017 · 179 posts · 208 votes
7y
@Greg Jeanfreau if I may jump in here, when I used to do arbitrage my insurance broker advised me to make sure the owner of the property has a STR policy in addition to the renter. I looked into providing insurance for the property (dwelling & liability) for the owner and they advised me that since I didn't have "insurable interest" in the home I couldn't cover it. I required the owners I rented from to change their policy to a STR policy so I could sleep at night and they wouldn't be left with huge liability while I was covered. Some people suggest, such as Brian Page from BNB formula, that you can get a CBIZ policy for your rentals and thats good enough. He might be right but I was told that this was not true.
Obviously way harder to get owners to get on board if you make them change their insurance but its the route I took in Colorado.
If you own the property its much easier with regards to insurance. Feel free to PM me with more questions if you have them.
Rental Property Investor · Rohnert Park, CA · Member since 2014 · 307 posts · 160 votes
7y
@Cassandra Staffieri
I like your style of rebuttals towards all the naysayers on this post. Good to keep pursuing your plan and to keep their negativity at bay!
Madisonville, LA · Member since 2018 · 125 posts · 71 votes
7y
I dont get this thread, the OP was asking for info about a market, and it seems people are using it as a sounding board against Airbnb. And I dont have any interest in it but it's a strategy some people make money with, and there are plenty of podcasts and articles on BP about it. So what is the point in knocking it or saying it's not investing on this thread? Who cares, if she's making money who cares if it doesnt fit your idea of investing.
Rental Property Investor · Rohnert Park, CA · Member since 2014 · 307 posts · 160 votes
7y
@Cassandra Staffieri
I love your business model, Cassandra! With your 42 Airbnb’s that you are cleaning, might you also be able to provide other services to the guests? I have read that some people offer to book tours, or bicycle trips or boat rides for the guests. It’s just making the vacation a little easier for the guest and they will pay a little extra for that convenience, so you can get a little extra income from the people you are already in contact with.
I appreciate your talking about your experience with STRs on this post.
Good luck with the changes coming up in Boston!