WWL>Topics>>8-12-14 12:10pm Garland: on short-term rentals

8-12-14 12:10pm Garland: on short-term rentals

Aug 12, 2014|

Garland talks with Jim Uschold of the Alliance for Neighborhood Prosperity and Dr. Ivan Miestcovich of UNO about the debate over short-term rentals in New Orleans.

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Automatically Generated Transcript (may not be 100% accurate)

Welcome back. The throw we're a finger about the push and Richard property. -- visitor for a ultimately short period time it's out of premarket -- an illegal market from what I've been reading and certainly not an expert at -- and it's complicated. Her boots on jobs today or at least all the details we can squeeze in. We have voted Jim fueled with the tourney for the alliance of neighborhood products eroding. Short term landlord organization. Or legalized in the news short term rental industry. Jim welcome short Richards on. A lot of credit -- its -- City Council Thursday. The City Council and a number of issues about a month or so ago they changed the definition of transient vacation rental. Which isn't zoning ordinance and order to properly encouraged or they can make them able to enforce the current short term rumpled. And and what you see that that so well. -- -- -- I think the the actual change that they made to the -- transient vacation rentals hopefully in the long run home make any difference. Com the group that I represent is a group of property managers and property owners were trying to do always call private home rentals. The term short term -- -- over broad and that would include hotels mode so. Hospitals and places like that so we're talking about people or at least in a private homes or apartments or rooms to people wanna visit our city. It's going I'm not sure what the exact numbers are a 1015100. Listings on air BB and CR BO web -- like that so there's a a large demand by the the visited tourist city this state and and accommodations that are other than you know traditional hotels motels and and even traditional bed and breakfasts. And then I think your organization has constructive for stability board you're an old. The -- take a look at this. Correctly about the I think we have the the study has been delivered I've looked over at were getting ready to release. Not on the board -- -- tactic I think coming up the next week or so. Maybe a little longer we should be releasing. Bet that the and partner economic impact study and were also working on a draft ordinance. It's gonna try to legalize the private home rentals and and regulate them. To eliminate some of the problems that -- Do agree -- All right let's try to did on the list of follow what two organizations put above board to paying. The data from that so -- is gonna show number one. Shirt too short too little visitors would not visit New Orleans. If dips in Ontario moved to oil or traditional B and -- You think you've got data that proves that. I I don't think the environmental aren't environmental economic impact study covered that specific issue we do know from them. Comments from from visitors as well from comments from people like myself and other people who travel out of town. But a lot of people prefer to stake in short term rebels when my wife and I and our family visit. You know Gulf Coast or Florida. Or anywhere else we're looking for you know private home rentals rather than the hotels. Com if you look at your own meals. Especially the hotel. Children are okay but it is just not as -- private and experience. And so. You know would we stay in the war ones. Purses going to Austin if one allowed you know problem -- the other didn't. I'm I think there's a fair number of people who you know my delay their plans or stay at another location if they had to stay in hotel or motel. And let's not forget there are a lot of times during our our our seasons that the hotels. Full occupancy and there is no other place to stay. That you know a private home rental. And thought she owned or in your organizations saw that. Those who stay in the short term little say longer spend more money than those that stay in the -- That's correct I think that the results of this study indicate and other -- -- air India has I think it would cook -- it is you know three or four days. That car or two or three days I think the average. Private home -- is you know you know closes at four to five days so this is an extra day there. Com or so a lot of money is spent in the neighborhoods. So people are staying in you know gentility. Com. Brought more central cities -- the -- -- -- Private homes rentals and in central city now I think and they're bringing money into the community of people -- stay at the -- rebels. How to come down the French Quarter and do a lot of the typical tourist things. But also spent you know time and money at some of the local shops they'll spend it in of the local restaurants and its redolent of the tourist dollars the first city depends on. Throughout the city giving more money for those neighborhoods and businesses that are located in those neighborhoods. And a lot of people. From what every that that have these homes Reynolds. Do this is part of their income does this is the our peeps that allows them to pay the mortgage keep the house maintain the proper. That's cracked a lot of people out there you know for example a traditional Portland's double. And they -- we know -- -- on one side and -- rent out the other side there's a gentleman whose. The pockets of the City Council meetings that -- the city planning commission meetings. That's says he bought property -- -- A double effect the and he does not -- side. Rent out the other side of the private home rental and he doesn't doubt that he wouldn't be able to afford. You know to have that house and let's not forget that and that neighbor that is probably picking up what have been a blighted flooded into the post-Katrina house. And he's returning that the commerce. There there's also -- claimed that. Short term little screen direct job opportunities you have the numbers -- now. He I don't know that the study right time -- yet there are direct job opportunities. Private home rattle operators a lot of them come animal by property. And antics. And a lot of these things are being. They're being -- that to the tourist market and they want a night apartment door and -- you know Condo nice room. And a lot of these things needs upgrading they need you know new kitchens and bad. And have a good accommodations the private home -- operative I think. Generally will maintain their properties better because they have to in order to get the bit I think -- B&B -- com ratings. And the other lieutenants rate the owners the owners rate the tenants. And if you have a place that's not well maintained you're gonna get bad numbers. Tom on the outside jobs these people higher housekeepers to clean the room. Yard maintenance company to make should be yard looks good. If there are you know small problem though and a man any woman who's available to come in and solve those problems. You know just to make sure that there there residents get have you know what good is her experience in the -- and. All right -- Singapore's break or those who view listen. In your neighborhood who have these short term rule Holmes says the were involved in this industry. If so you for him or against numbers as good idea about do the Gibbs -- -- 6018. Celebrity. To over 866. It'd and zero said. The debate going on in the city -- over. Short term education -- How should they be regulated should they be regulated. Who should be legal move shouldn't be in the group which neighborhood to allow it would won't won't. -- -- Jim cultural -- in the tourney for the alliance of neighborhood prosperity. It's he broke president short term rental industry. Itself over our callers territory into your room would you march oh. -- A lot of credit and hold them back doors to him. And water. -- -- -- -- -- -- -- -- -- Robbery. -- and take over here. That's Jim that's one of the portions of courses City Council to take a look at. Highly regulated to do they pay insurance Tuesday. Have all the regulations. Hotel motel. Well right now the problem is there there are no regulations and of the private -- You know unless -- -- B&B are you know technically illegal under. The zoning ordinances and under a criminal statute. The problem is that there is no. Revenue by the city to. Enforce those those. Those laws and going to criminal court it is is a difficult proposition in any event. That specific question caller has about insurance and I think if you're running any sort of you know. Rental operation whether it's you know a long term rental or as a shorter term private home rental and you need to have proper insurance. If you're running I mean if you don't have insurance tenure here on the to live -- -- rhetoric a bit of fire of their computer problems so. If the regulations require financial group insurance then you know that doesn't sound that on reasonable I think that may be one of the things that's an -- our draft ordinance that we're working on. We've heard the news or exits of the previous law. Only talked about the properties and business. For a year or wall. Being illegal. Then the news reports to council decided to declare all. On the lights and short term loans would be illegal. -- that says that the count let the door open to legalize and regulate. Private vacation. I'm confused -- -- for news. Well there's I think the City Council and I think a couple of -- at least they haven't LaToya Cantrell. You know specifically recognize that there's some problem to be resolved. And the one of the problems. I think is that it is not really a problem specifically with -- level but with bad operators. There are some people in the French Quarter and temerity who are -- operation of the people who come into town and they think it's Mardi -- every day. And and you know the promise not that there. Unlicensed or on regulated. Private over operation of the problem as well -- promise -- not regulated but there's no regulations requiring them to -- be accountable and responsible. The real problem that most of the opponents of the problem rebels is that if there are bad habits and -- operators aren't responsible or accountable. And the with the city lacking resources to hold them accountable is really not much that's being done. If particle levels are legalized it and am reasonably regulated. You know that there's some revenue coming in them pay a couple of dollars applications he and a and an annual the a lot of that money can go to paying for a quality of life officer whose job it is to crack down on the the bad operators that those operators get too many complaints when they renew their license. You know a year to retreat later whatever that the period would be and they may get elections mean all the -- So they'll be an incentive to. You know take care of -- think the other thing we're working on the code of conduct which basically told the operators. And that and that's what's expected of them you know tell that kind of what the noise ordinances are what the parking restrictions are winners went as garbage picked up. He'll probably have neighbors who aren't on vacation and that have to get up and go to work or school. And most of that is pretty much common sense would most of the private -- level operatives are already doing in the kind of party being. That time though the problem is if you. Bad operators were not being respectful to there they're neighbors and I think legalizing and having some reasonable regulations that addressed that problem. -- Stephen Stephen in the merit on the Euro with -- The -- well. At last statement to attack him. And -- picked up but much should be -- being indeed people have committed. And then today. Let me play assembly areas a year ago didn't drop a ball I mean these people don't know what they're -- That they're red areas some of whom have shared first. They don't really know what to do it until we get there. And I can and definitely. I have felt uncomfortable orbit at three they'd come back that they've had trouble at the taxicab and our commitment -- -- neighborhood. Definitely you know a lot of these people that are here for parties -- what they wanted it -- wrong at all. And it's not -- -- tougher in the neighborhood. -- -- I thought there are being be. Told people that dead user service. Bad Beirut good news neighborhoods bedroom -- Good really tore. I'm not sure I'll be there Hoyer DMB to typically handle that I'd do you know. That you know my wife is a real estate broker and there are certain regulations that she has to -- a and so. You know telling people that you know she can't even say things that -- Well this you don't wanna buy this property to that quote unquote bad neighborhood or you don't wanna go to that -- those are code words for discriminatory practices so. Yeah I understand what the caller is saying about the other being some some probable Ronald located in and let's quote unquote bad neighborhoods. I don't know how you address that problem. And one of the things. Doesn't have been being. Air B&B and the others. Didn't I hear you say they have critiques from the room tours critique from the people that -- and -- Their -- should be if somebody I didn't quit while. There's some really bad neighborhood Dublin -- would be part of the information on the web site without. I would think though they would give them -- stars have a five star or whatever there there -- citizens say this was this was dangerous neighborhood my cab drivers that you know are you sure -- at stake here. So that some people more or more. Open to let's say transitional neighborhoods and other people who really want to be in a comfortable safe place so. I don't know I -- solve that problem Tom. You know let me make an illegal and and a bad neighbor of the decides what -- -- the other thing is once the the problem level operatives you move in there improving those neighborhoods you know basics about house. Or two then you know more people start moving in this is part of you know getting rid of our blight problem -- and -- developing a lot of them vacant housing stock we have since Katrina. A good big -- when you're a -- porn I heard that. When Maria entrances to regulate too -- imports regulations that it held -- -- live in the cup road French Quarter -- I think your idea of viewed charge feed everybody is today. And that he goes to that one officer who's the one that respond and play entering. And yeah I'm not sure exactly well distributed that's certainly one of the ideas were talking about com Bob Ellis is on the other attorneys working with me on this project. Is he thought to be on the finance opposite trying to figure out what is the best way to you know to get the revenue in and directed. To the places in need and make the regulatory process and and the financial collection process easiest. -- for the people in the city we want to make that you know easier for for everyone you know including the regulators and enforcers and the tenants and the and the property. Owners and operators. Jim Florio will continue to do this story and do we have a conclusion. Hopefully won't get you back on in the mean time I appreciated that talk. Thank you I appreciate your having me on. Coming right back we're gonna talk to a professor. Of finance and mostly right -- with -- Are welcome back we're thinking about those short -- rules in this city. Legal Julian hall. If there ago and be termed illegal. -- gets people to make sure that illegal action doesn't car. Complicated subject but being debated -- City Council in march of the community. Better help me understand this we have doctor I've been much coach directors who sued propose your opponents. Also directors -- and -- or economic development and realistic researcher did you know doctors always purge your patella. Are you doing today. Glad to do ignore. -- more ground balloons. Do you. Proponents. Publication that they sent to me. And consumer true thoughts. One of the pursuing that claim news. Minute short term little visitors wouldn't visit New Orleans who they had stayed in a hotel motel. Or prove that you will be indeed -- protesters -- -- they don't expert. Or could see that their their people come in the world and donors so early wanna be too visible. And they want apparently -- -- probably a somewhat of the unique experience. So good way to do that is to you know rent a place that's really come off the beaten path. And not make me a residential you know -- -- -- which on global somewhere in in the neighborhood that. They can remain pretty well you know embedded in the community so to speak. Enjoy their top quality here. There are a lot of -- of these for example that. You know a bit this -- You know they've -- good and that's a good student and a best breakfast is not for everybody you have stated several. You know that I've had good experience and that's that's you know that kind of mediocre experience so it just depends on who really operating yet and but I think -- think is an argument could be made it -- that people who want to come here and kinda wanna take in the city from a different perspective. Certainly. That's one of the. Do very stay longer spend more money than regular -- billion billions. You know a little while they do not I suspect that they do. I might my inclination is that I haven't seen any research on this. You know on this market. You know -- say how much they spend enough most of our. Visitor research is done on people who. State traditional hotels you know lodging facilities. And so you know you know that we've got a pretty good handle -- My instincts tell me that they probably do stay longer. And that since they can. A fourth team to Renton. Maybe you know rent a little higher level. Than what others might be you know experiencing. They can spend more outside of just watching -- they have you know money but there they can afford. Dispensable and you know restaurants and you know other expenditures well here. And and one of the -- -- because there and then did so to speak in the neighborhood. They're gonna spend more money in local their boots -- businesses -- the restaurants and bakeries. And and the neighborhood. Specifically. Get to enjoy the direct benefit -- via money. Absolutely that's that's that's well giving it earlier I think the you know and that people who you know research before the common the world that we -- You know what people read. A whole -- -- about -- owns the figure out what they -- do it again here. And one thing that you can read a lot about it is our fault line neighborhoods and every one of them are very unique in its substantial way. And you know so that you know come back -- and -- since this has since Katrina but much all of it back in place. And you know and they -- and buy or most of its -- very very well. And had come back even stronger than they were before. So you know if I'm doing some research on line them. You're reading about the man Leo reading about -- -- read about it you know -- and those different neighborhoods. -- announced it would work state simply it's really up there were reckoned to have access to you know the French Quarter of the counting -- And everything else and -- you know might wanna go to the world war but rabbit and you know. Having to. -- that location at all would have to go to that neighborhood while I. Stay in this neighborhood. And then use that they operate elsewhere but -- of -- in the media got the convenience of the of the street court to -- streak going out. Do they agreed Joseph Lopes. Anything basically anything you know generates. Sales activity for retail or restroom ball are. You know has the ability to. To create jobs again. I don't know what this particular market has been studied. In any great detail because he is one of those markets. That Kyra well you know lies below the radar screen. So who you know it's not -- that. That -- it is not very visible and as a result of that would be very difficult thing to. To try to it would get a handle exactly you know what is the economic impact. Of these kind of short term rental market. Some of ballistic breaker when we come back. -- reports and -- sides said the council decided to clear on lies and short term and -- would be. Illegal. -- and then it's as they left the door open. So legalize them and regulate them. We'll come back -- let's find out exactly what is -- it's it's. And they have they moved to be regulated. And and control. How do you pay you for the people that are or going to monitor. The program. Doubled up build bigger celebrity is immoral by the are welcome back world think good about short term rubles. And do help lead veterans that we go to real estate act word doctor Ivan much Coke which. Director of the institute economic development and real estate researcher at you and old. A doctor or or of these medication rules are of the legal -- illegal. Well I guess that this city is saying it here illegal. Under current and maybe under the current ordinances that are available. To regulate subjectivity but if there's no ordinance to regulate this particular activity. Then the other side the -- that point is well it's not it's not illegal. Because it is an ordinance that is prohibiting it now I think -- me if I'm understanding with the Sudanese arguing. And I went to the city's web site is the only -- this. Basically doctors they want trigger the bed and breakfast. That that's my inclination is where which it under the bed and breakfast regulations where. You know you've got to be registered for the city's. That's a lot of -- you've got to be approved yet again to take a tax sales tax and also the good stuff. So it's essentially a way of you know -- regularly. And generating revenue for the city. But I think one question here before I think Garland is is important is that. It is so many of these pot is so many possibilities. And so many units that would be available with this kind of a short term rental. How are you going to really get a handle. How many people you get he'd take to regularly with the cost benefit relationship. Tried to do that as opposed to. You know taking existing regulations -- you have. And if somebody -- you know unit. -- you know for a week or month whatever might be. As long as everything everybody's complying with all the existing regulations in that city has. Noise ordinances and you know disorderly conduct and criminal and civil kind of activities. What's the problem you know what one more and that's what -- we -- And you know at them what the market function. But this isn't going to function. Now if it's obviously it is some. Some things that fall outside of current regulations and people -- triage on the flinched -- them for longer. Yeah this being disorderly is the rule is also well then you've got a whole battles slow ordinances. That you could going to be there on those violations. But -- you -- -- new set of -- and incentive categories. Occupancy people forget -- breakfast pretty well covered. And these little or bed and breakfast they just purely a short term Reynolds like a hindrance. And they range everything else themselves. So this is good -- it into the bed and breakfast. Categories. Aren't looking to bring you know Charlie of -- Charlie year old would Doctorow and my -- which. All -- get western Garland won the OK listen. -- pressure gets up and talk about this subject. One of these animals in my neighborhood which is absolutely destroyed the quality of life in my neighborhood. On these people commander -- Bernard. -- in everybody's place. As stated -- I have. A little trash cans that are controlled -- What owner this Francis knows editor travel yesterday's group. What -- -- you the regulations you're talking about. Laws in place. Of neighborhoods. Like shortly in the called some quality get something. -- -- think that you know that that's good they're noisy and oysters and you know causing. You know late night you know what I you know activity. What's disturbing the peace with that the most via. It you know ten different ordinances on pins in the city that the deal with different kind of disturbance of the peace. You know in terms of the garbage in the in the traditional that. I mean if there. You know if if they're being. You know disrespectful of the neighborhood with regard to how to dispose of trash or would they do. Then use it again that I believe is probably existing ordinances. That could be enforced brought to bear on. And about it out of property children that area. Then would in essence I would I would bring that I would bring -- you have to majority against the the other popular smoking -- those that. Challenger in their route called him by counsel people who are. Or want to go watch I'll leave them and activist for -- here and there is forest. And forcing it. You know pretty well. What -- -- unfortunate thing is it just log on and on and on I'm not your old paper. -- -- Is part in place to go to the doctor. All -- not people park and a -- Just it's just. Yeah it at all. It's just yeah. Doctor Bob and more good things hmmm wonder about and if it was regulated. And in pretty good speed charge. Could could that money be specified. For wandered too worked in inspectors. That do nothing but. Well I'm sure it could but I guess the question has to be yes you know or whether you know and I heard some of the similar. -- -- similar complaints that Charlie bring it up. Regarding bed and breakfast you know in in certain neighborhoods. Where you know people. If people would stay at some of these facilities. -- some of the same kind of problems and just because it is ordinances on the book doesn't necessarily mean that they're going to be they're going to be enforced. And they're collecting fees already on the at least registered at breakfast. -- so what is the question would be why aren't those ordinances. Being enforced against. Those who may not be living according to all the rules breaks. Doctor. All ways real pleasure to have you on the show thank you for the expertise will call you about it could have been followed them from three. Okay calling -- talkative. Our Bob it's but I do -- big -- seven via a moral five the -- at. And -- feels comfortable -- one of the engines -- under the talk about it Robin Williams. Apparent suicide. It's about ten peep from him in New York. One day and watch his act in the man was an absolute -- news. In through the years I don't know -- -- people interviewed or talked to. That's it's so many comedians. Actually. Cover their depression. With what they do for a living. And you'll get a -- in depth concerning the juniors or rubble Williams Robin Williams also. And BD achieved broke serve those can talk about the violent weekend across New Orleans sixteen shot in -- yet. And really don't show coming up.