Rental crisis: Utopia Suites apartment tenants in Brisbane to be kicked out to make way for Airbnbs

Hundreds of renters are facing potential homelessness after being told they will have to vacate their apartments to make way for Airbnbs.

Tenants living in the Utopia Suites apartment building in Brisbane’s Fortitude Valley say they are being evicted as management converts the properties to short-term accommodation for tourists.

The brutal move comes as Australia finds itself 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 is not clear how many residents in the Wickham Street building are being evicted, however advocacy group South East Queensland Union of Renters claims there are “hundreds”.

“Residents…report that building owners have just evicted hundreds of people from their apartments…and intend to replace the apartments long-term with Airbnbs,” the group said in a statement Thursday.

Tenants of the Utopia Suites apartment building in Brisbane’s Fortitude Valley (pictured) claim they are being evicted as management converts the properties to short-term accommodation.

Advocacy group South East Queensland Union of Renters claims ‘hundreds’ could be affected by the evictions and warned that people could be forced to sleep in their cars.

“While renters are forced to live in cars, sleep on friends’ couches, or sleep rough in parks, and thousands of people struggle to make ends meet after high rent, landlords are killing exploitation of the tenants”.

It is understood that residents were informed of the building’s transition to short-term housing via a notice in the management elevator area.

Tenant Sarah Nixon had been living at Utopia Suites for about 18 months before learning of her eviction and said she has yet to find a new home.

“They just told me they’re not going to renew my lease,” she said. 7NEWS.

“They told me the owner was moving, but now they’re moving it to Airbnbs.”

“Especially in a rent crisis, it’s like, where are we going to go?”

Resident Shakira Wilson said she “started freaking out” when she was told she would have to move, after living in her unit for only three months.

However, he said he had been “very lucky” to be given another apartment in the complex after asking “if there was anywhere in the building we could go.”

The building management company recently changed its name from Utopia Suites Management Pty Ltd to Kooii Apartments.

Kooii’s website says the new deals will be available from March and would be “ideal for both leisure and business travelers.”

“Kooii Apartments offers a new and exclusive collection of apartments for short stays, combined with amenities such as an infinity pool, spa, sauna, gym, rooftop cinema, rooftop BBQ facilities and outdoor seating and lounging area” , says. .

The building management recently changed the name from Utopia Suites Management Pty Ltd to Kooii Apartments and will be offering short term accommodation.

When asked by news.com.au, Kooii Apartments addressed claims that residents were being forced out of their apartments for short 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 in the short-term rental group (serviced apartments).

“The apartment owners we represent have the right to try to maximize the return on their investment.”

Tenants across the country are feeling increasing pressure amid record low vacancy rates and rising demand, while rental prices continue to soar.

In Sydney and Melbourne, only 1 per cent of rental properties are available to rent.

Brisbane’s vacancy rate stands at 0.8 per cent. It’s half that of Hobart, and in Perth and Adelaide it’s worse, with just 0.3 per cent available, meaning only one in 300 rental properties can be rented at the moment.

The problem is also spreading to the regions, where rental availability has fallen to 0.8 percent.