Long-term tenants at former site of The Nook Backpackers dismayed by massive rent increase

Inner-city tenants living in a former hostel on Liverpool Street were given just 24 hours notice before a colossal rent increase in a move one resident has described as an ‘ambush.’

A group of tenants living in a former hostel on Liverpool St were given just one day’s notice before a massive rent increase was brought into effect, with one resident describing the move as an “ambush”.

Tim, who asked that his surname be withheld, said he had lived at the old The Nook Backpackers accommodation – which ceased operating as a hostel due to the Covid-19 pandemic – since August 2020.

He currently lives there with seven other long-term tenants, including people from Colombia, India, and Germany.

Previously owned by Bronwen Pty Ltd, the property’s new owner is demanding much steeper rental payments.

Tim has been living at The Nook Backpackers in Hobart since 2020 and has recently been hit with a rent increase more than double what he was previously paying since new owners took on the business. Picture: Nikki Davis-Jones

The occupants of the accommodation had been living in relative contentment until August 31 this year, when they received an email from their real estate agent saying they would each be required to pay $330 rent per week, effective as of the following day (September 1).

For Tim, who had been paying $150 per week, that meant his rent would more than double.

“I consider that an ambush and they did this on purpose,” he said. “Because they could have told us (earlier).”

“If they’d given us two months’ notice, that building would have been empty by the time they … received it into their ownership. People would have had more time to (move).

The Nook Backpackers in Hobart. Picture: Nikki Davis-Jones

“It’s very stressful, very sad that this kind of behaviour is allowed to happen in Tasmania.”

In the August 31 email from BelleParker@homes, the real estate company managing the property, tenants were told that they would need to advise the property manager if they didn’t wish to stay in the accommodation “so we may begin advertising for new tenants”.

“All common areas will be required to be maintained at a high standard and there will be new housekeeping instructions for those who will be remaining in the property moving forward,” the email read.

Principal Solicitor, Tenants’ Union Ben Bartl at Hobart. Picture: Chris Kidd

Tasmania’s Residential Tenancy Act requires that tenants be given 60 days’ notice of a rent increase.

On Tim’s behalf, the Tenants’ Union of Tasmania has lodged an unreasonable rent increase application with the Residential Tenancy Commissioner, arguing that the new rent is excessive when compared with similar boarding premises in the area.

“There’s a significant lack of supply and many landlords believe that they can make these unjustified requests because they know that if the tenant isn’t able to afford it, (there) will be someone who’ll happily take their place,” Tenants’ Union principal solicitor Ben Bartl said.

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