Hundreds of renters are facing potential homelessness after being told they will need to vacate their apartments to make way for Airbnbs.
Tenants living at the Utopia Suites apartment building in Brisbane’s Fortitude Valley claim they are being evicted as management converts the properties into short-term accommodation for tourists.
The brutal move comes as Australia is in the midst of a nationwide housing crisis with rental vacancy rates lingering at a record low of less than 1.0 per cent.
It’s unclear how many residents at the Wickham Street building are being forced out, however advocacy group South East Queensland Union of Renters claims it is in the ‘hundreds’.
‘Residents… report that the landlord building owners have just evicted hundreds of people from their apartments… and intend to replace long-term apartments with Airbnbs,’ the group said in a statement on Thursday.
Renter Sarah Nixon is facing an uncertain future after being told she will have to leave her apartment to make way for Airbnbs
Renters at the Utopia Suites apartment building in Brisbane’s Fortitude Valley (pictured) claim they are being evicted as management converts the properties into short-term accommodation
Advocacy group South East Queensland Union of Renters claims ‘hundreds’ could be affected by the evictions, and has warned people could be forced to sleep in their cars
‘While renters are forced to live in cars, crash on their friends’ couches, or sleep rough in parks, and thousands of others struggle to meet their needs after high rent, landlords are making a killing off the exploitation of tenants.’
It is understood residents were informed of the building’s transition to short-term accommodation via a notice in the lift area from management.
Tenent Sarah Nixon had been living in the Utopia Suites for about 18 months before learning of her eviction, and said she’s yet to find a new home.
‘I just got told they’re not going to be renewing my lease,’ she told 7NEWS.
‘I got told the owner was moving in, but now they’re moving it to Airbnbs,’
‘Especially in a rental crisis, it’s like, where are we going to go?’
Fellow Resident Shakira Wilson said she ‘started freaking out’ when told she would have to move, after having only lived in her unit for three months.
However, she said she had been ‘really lucky’ to be granted another apartment in the complex after asking ‘if there was somewhere in the building we could go’.
The building’s managing company recently rebranded from Utopia Suites Management Pty Ltd to Kooii Apartments.
The Kooii website says the new offerings will be available from March and would be ‘ideal for both leisure and business travellers’.
‘Kooii Apartments offers a fresh and new exclusive collection of apartments for short-term stays, combined with amenities like an infinity pool, spa, sauna, gym, roof top cinema, roof top barbecue facilities and outdoor sitting and lounging area,’ it says.
The building’s management recently rebranded from Utopia Suites Management Pty Ltd to Kooii Apartments and will be offering short-term accommodation
When questioned by news.com.au, Kooii Apartments addressed the claims residents were being forced to leave their apartments for short-term stays.
‘We manage just over 200 apartments out of the 300 in the building as property managers for individual owners,’ the response read.
‘Some of these owners have exercised their option to put their apartments into the short-term letting pool (serviced apartments).
‘The apartment owners we represent are entitled to try to maximise their return on their investment.’
Renters across the nation are feeling increasing pressures amid historically low vacancy rates and surging demand, while rent prices have continued to skyrocket.
In Sydney and Melbourne, just 1 per cent of rental properties are available to rent.
Brisbane’s vacancy rate sits at 0.8 per cent. It’s half that in Hobart, and in Perth and Adelaide it’s worse, with just 0.3 per cent available – meaning just one out of every 300 rental properties can be rented at the moment.
The problem is spreading to the regions too, where rental availability has fallen to 0.8 per cent.
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Read more at DailyMail.co.uk