Property owners blast city for lack of illegal short term rental enforcement

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Property owners blast city for lack of illegal short term rental enforcement
bestofneworleans.com (blog)
Under city code, property owners without hotel or bed and breakfast permits cannot rent out their homes for less than 60 days in the French Quarter or 30 days elsewhere in the city. The city enforces the law by sending out notices to property owners or ...

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This article goes into detail as to how much these illegal properties 'steal' from the legal ones each year & the approx. loss of tax income. 

Members of VCPORA estimated that licensed hotels, motels, inns and bed-and-breakfasts annually lose $13 million in revenue to short-term rental scofflaws. That adds up to about $1.4 million in taxes and licensing fees the city fails to collect every year, they said.

That is nothing to sneeze at! 

At the end of the article it mentions how scam artists are using the market to rip people off. 

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02/24/2011

It is a huge issue here. There a so many taxes they aren't paying. The local governments are going after them, now.

 

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Joey Camb's picture
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Our trouble is they don't have much of an incentive to go after ours - we only pay vat when you are over a certain size at least 8 bedrooms as you have to be turning over about £110 thousand pounds a year (i forget the exact threshold)

However all it will take is one of these illegal places to have a fire or an accident and we will all be tarred with the unsafe brush!

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Our VAT is collected starting at $30K, so they are likely under the limit. But the hotel tax has no threshold. They also don't declare it on their income taxes (we have two). And then the city also charges you for a permit ($200), then a partially commercial city tax rate. And finally, you need an inspection that you have to pay for, where they check that you have all your licences, permits, food safety course, emergency equipment (first aid kit), fire alarms, and proper insurance with $2M liability. These people have nothing! 

Their home insurance policy isn't in force, because they are in violation. They don't declare the money, don't collect the taxes, don't know anything about food safety.... it's just looking for disaster.

Joey Camb's picture
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we have to have a food hygine course - this has to be renewed every 3 years - just did mine online easy peasy $50 which isn't bad

if you are bigger than a certain size you have to have change of use planning permission but its not difficult to get as people understand what a bb is and there are lots in residential areas.

we have no hotel tax and no permits required  but we do obviously need public liability insurance.

we are inspected by the Environmental health people (they check food stuff) and the fire brigade can inspect any time

we have to have our fire alarm and fire extinguishers done annually which is fine - costs about £200 all together but includes any small things that need doing and if any extinguishers need changing they do a very good deal

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04/21/2010

This is not an issue for my B&B but I can see where it is huge in big cities. I have tons of friends that do this with their places and it is basically illegal hotels. 

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