More than 20 tenants evicted as Queenstown apartments become Airbnb

Nicole Mathewson Reporter from Otago News

From reporter Debbie Jamieson:

More than 20 residents living in nine central Queenstown apartments have been given notice to move out so their homes can be converted to short-term Airbnb rentals.

The tenants were given 90 days’ notice in December that their leases would end in March.

“It’s s..., just horrible,” said one tenant, who had no idea where she would be able to find a home in Queenstown’s strained rental market.

A spokeswoman for property manager Tahuna Management Ltd said the apartments were built specifically to be leased as visitor accommodation in about 2018.

When New Zealand’s borders were closed due to Covid-19 in 2020, the owners decided to lease them as long-term rentals.

The return of international visitors and rising interest rates were behind the decision to return to Airbnb.

The apartments had resource consent for 365-day visitor accommodation and the owners had a commercial rate – abut 50% higher than standard rates, she said.

“Now the tourism is back and the town is busy it’s only natural that they’ve reverted back to Airbnb.”

Many other Queenstown apartment and house owners were making similar moves, she said.

Despite reports of up to 40 tenants being affected, she said the correct number was 20-something.

That was cold comfort to the tenants who are looking for new homes in a tight property market where dozens of people are vying for leases.

Two, who work in tourism and hospitality, said they would consider returning to their home in Melbourne if they cannot find somewhere to live.

“We’ve been applying for apartments and rooms, but every room has about 300 messages on Facebook,” one of the tenants said.

They saw one room “the size of a closet” for $450, couple rooms were going for $380, and hostels were charging $350 for a week in a bunk bed.

“People are just working to pay for accommodation – it’s getting a bit ridiculous.

“I want to stay. I love the place and I don’t want to go home, but if I have nowhere to live and I’m losing $300-$400 a week on a bunk room, what’s the point in staying?”

The shortage of worker accommodation has led to many tourism and hospitality businesses closing at key times because they do not have enough staff to open full time.

Two Wellington tenants will return to their home city. One said she was thinking of returning home anyway, but the lease cancellation cemented her decision.

“Everything is overpriced in Queenstown, not just accommodation,” she said.

A couple from Christchurch having been paying $600 for a small two-bedroom apartment in the block.

They were expecting either a big rent increase or a change in the lease so were not surprised to hear it was moving to Airbnb.

“It’s unfortunate, but not unexpected.”

His partner said the situation was “shit, just horrible.”

It was hard enough to find a place to live in Queenstown without such a big group all looking at the same time, she said.

However, she understood the landlord’s perspective.

“You think about how much we pay in rent, and they can probably get that a night with Airbnb.”