In the world of short-term rentals and real estate investing, few stories capture the essence of boom and bust quite like that of Dani Widell, Tulsa's self-styled "Airbnb Queen." Her rapid ascent to the top of the local vacation rental market, followed by an equally swift downfall, serves as a cautionary tale for aspiring entrepreneurs and investors alike.
In early 2022, Tulsa was experiencing a gold rush in the short-term rental market. With post-pandemic travel rebounding and interest rates at historic lows, investors flocked to the Oklahoma city, eager to capitalize on the Airbnb boom. At the center of this frenzy stood Dani Widell, a small-time real estate investor turned Airbnb property manager who had quickly made a name for herself.
Widell asserted that he was approaching a grand total of 100 listings, surpassing all other individuals in Tulsa. Her company, Widell Renovations, was generating over $1 million in annual bookings, according to tax returns. Widell's pitch was simple yet alluring: she promised to transform ordinary homes into cash-generating machines, handling everything from interior design to guest management.
The Allure of Easy Money
For many Tulsa residents, the math seemed irresistible. A suburban-style home could be purchased for less than $75,000 and rented out for $117 a night on Airbnb. With potential annual revenue of $30,000, it's no wonder the city felt like it was in the midst of a rental gold rush.
Widell's Facebook presence further fueled the frenzy. She offered advice in short-term rental groups and promoted her services, promising to give properties "the look of a boutique hotel." For investors, Widell's pitch of a "set it and forget it" approach was particularly appealing.
Warning Signs and Red Flags
However, as with many stories of rapid success, warning signs began to emerge. Mallory Massey, a local real estate investor, had entrusted nine of her properties to Widell in the fall of 2021. But by the following year, suspicions were growing.
Other investors and clients began to notice discrepancies. Brandon Neth, a local landlord says "What doesn't make sense to any of us is that she had Tulsa under control. And if she would have just done things right, she would have been making so much money."
The Collapse of an Empire
Within a year of her peak, Widell's Airbnb empire came crashing down. Hosts weren't receiving their rent, employees weren't being paid, and creditors were knocking on her door. Her personal life was also in turmoil, with her marriage imploding.
The accusations that followed painted a picture of financial mismanagement and potential fraud. Mallory Massey filed a lawsuit in August 2022, alleging that Widell had made $25,000 in fraudulent charges related to running the Airbnb portfolio.
Legal Troubles and Disappearance
As the situation unraveled, more legal troubles emerged. Jessica Neeley filed a small-claims suit against Widell seeking $3,700. Widell's husband not only filed for divorce but also sought an emergency protection order, alleging erratic behavior.
Former employees and clients filed multiple police reports against Widell, alleging incidents of harassment, fraud, and burglary. By early February, Widell had seemingly vanished, changing the locks on her personal offices and telling employees she wanted to "start a new life."
Lessons from the Fall
The sudden collapse of Widell's Airbnb empire serves as a stark reminder of the risks associated with rapid growth and unchecked ambition in volatile markets. It highlights the importance of due diligence for investors and the potential pitfalls of putting too much faith in self-proclaimed gurus.
As one observer noted, "The sudden collapse — and the web of accusations that accompanied it — offer a cautionary tale of what comes from putting too much faith in a volatile market, an untested guru, and the promise of easy money."
The Broader Impact on Tulsa's Housing Market
The Airbnb boom, exemplified by Widell's rise and fall, has had broader implications for Tulsa's housing market. As one Reddit user pointed out, "All of these short term rentals yet the city is struggling to meet their 13K of housing inventory goal." The proliferation of Airbnb listings has raised concerns about housing affordability and neighborhood stability.
The Future of Short-Term Rentals in Tulsa
As the dust settles on the Widell saga, questions remain about the future of short-term rentals in Tulsa. Will investors be more cautious? Will regulations tighten? Only time will tell. But one thing is certain: the story of Tulsa's "Airbnb Queen" will long serve as a reminder of the potential pitfalls in the world of real estate investing and short-term rentals.
