Renters slam landlord’s wish to turn six terrace houses into short-term stays

A Hobart landlord who owns a row of six terrace houses has sparked furious debate after revealing her plans for the heritage-listed properties.

Prospective tenants have slammed a Hobart landlord’s plan to turn her six adjoining terrace houses into short-term accommodation, arguing it’s these decisions that are contributing to the city’s brutal rental crisis.

Hobart City Council is currently assessing the property owner’s formal application, which was made available on its development portal this month.

In her application, the landlord states she would like to apply for the conversion as there is a “high demand” for tourist housing, with the area having a number of “unique experiences” on offer.

The landlord owns six terrace homes in North Hobart that underwent renovations. Picture: Google Maps

The Smith Street homes are a stone’s throw away from nature reserve Soundy Park and are surrounded by restaurants, shops and entertainment venues.

“(The terrace houses are within) close proximity to sporting facilities, walking tracks, (the) hockey centre, aquatic centre, tennis, crickets and football venues,” the landlord wrote.

“(The) iconic state cinema, new whisky bar on Argyle Street, redevelopment of the ‘wagon’ horses, (and) a new car rental yard (are also nearby).”

She also noted how there was a lack of short-term stays in the area due to a property across the road – which was originally short-term accommodation – converting to a long-term rental.

Currently, three of the woman’s six homes are tenanted, however “due to rents being too high” the landlord expects those tenants to leave when their leases end.

“The tenants will be leaving when their leases expire due to rents being too high now as a result of land tax increasing by nearly 300 per cent and also the rising interest rates,” she said.

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The landlord says the area has plenty of opportunities for tourists. Picture: Google Maps

As for the other properties, one was recently purchased and is now vacant, another was under renovation due to it being “completely trashed by the last tenant” and the third was occupied by the landlord’s son who has since moved out.

“These terrace houses are heritage and apart from (the recently purchased one) I have been restoring them to their original state as per Heritage Tasmania guidelines,” she said.

“I feel these would not only be a great asset as visitor accommodation to North Hobart but a lovely experience for tourists showcasing our beautiful heritage.”

The landlord and her partner have owned five of the properties for about 22 years, with the sixth purchased recently in December.

According to realestate.com.au’s property predictions, they’re valued between $731,000 and $930,000 each depending on their size and number of bedrooms.

The North Hobart landlord is one of a dozen applications lodged to the council in the last month to convert a property from long-term to short-term accommodation.

Meanwhile, Airbnb lists over 220 homes, rooms, apartments and cottages for the North Hobart area and its surrounding suburbs for an average price of $333 per night.

Three of the homes are currently occupied by tenants. Picture: Google Maps

Backlash from concerned tenants and locals

The rise in short-term stays nationally has amassed anger among the renting community as rental vacancies dwindle to record lows.

According to PropTrack’s December 2022 quarter rental report, rental vacancies have dipped to 1.6 per cent across the country’s major cities with Adelaide, Perth and Hobart recording the lowest vacancy rates of 0.9 per cent.

Melbourne and Sydney had the highest rental vacancy rates, sitting at 3.97 per cent and 3.32 per cent respectively.

For the tenants occupying three of the terraces, their landlord’s wish to convert the properties into short-term stays came as a shock.

They said the only notice they received informing them they needed to vacate at the end of their lease was a permit notice tacked to their front fence, the ABC reports.

Now, with vacancy rates at all-time lows, they fear they won’t be able to find another place to stay.

Meanwhile, other prospective tenants and locals who had faced or could potentially encounter a similar fate, in addition to the Council, have called on the Tasmanian government to implement stronger rules that stop landlords from converting entire homes into short stay accommodation.

“When will the government learn not to allow this to happen? More people are getting away with it. Less houses for renting, creating a larger problem,” one concerned local shared online.

Another added: “This is why everyone needs to stop using short-term rentals / Airbnbs. If no one uses them, then these owners will either beg for long-term tenants again or sell up.”

A third commented: “So another six homes – you know, places where people live – are being turned into holiday accommodation. The current situation is unacceptable and all levels of government need to get together and come up with a plan to fix it.”

There are over 200 Airbnbs in North Hobart and the surrounding suburbs. Picture: Airbnb

But not all disagreed with the idea, with some arguing given how long the landlord has owned the properties for, she should have the right to “do as she pleases” with the terraces.

“While I have sympathy for the tenants, vilifying the landlord for acting within the law – and making decisions about her own property is unfair and anger misplaced,” one empathetic woman said.

“If they are the homeowner I can’t see why they should have to even apply … Their homes, their choices of use,” another local added.

Short-term accommodation platforms like Airbnb have hit back at claims saying they’re to blame for the country’s rental crisis, arguing short-term rentals form less than 3 per cent of the housing stock nationally.

Additionally, over one million dwellings were empty nationally on census night last year, which Airbnb suggested far exceeds the number of homes listed on their site.

“Airbnb is keen to work together with a broad range of stakeholders and help play a part in helping to provide meaningful solutions and tackle the issue of housing supply and affordability,” Susan Wheeldon, Airbnb country manager for Australia and New Zealand, told news.com.au.

“While short term rentals generally comprise a tiny proportion of the overall property market, we’re keen to keep finding ways that we can make a positive contribution to this important issue.”

As for the landlord who is looking to convert her six terrace houses into short-term stays, she argues she’s only applied to give herself “options” in case short-term permit rules are tightened.

“I am a hardworking small business owner who has worked my whole life to purchase and maintain these properties,” she told the ABC. “They are my superannuation.”