Tenants in 10 out of 12 one- and two-bed units at the top of Marina Dr in Queenstown have been given 90 days to leave, while overnight guests have started staying in flats that have been vacated.
"Everyone’s really shocked and quite stressed because it’s hard to find a place at the moment," tenant Chris Irwin, who has lived in his unit for eight years, said yesterday.
"I’m only aware of two who have found a place. Everyone else hasn’t and some have left town," he said.
"These are all workers, and essential workers — there’s taxi drivers, courier drivers, hospitality staff, tradesmen."
It is understood this block, known as Silvercreek Frankton, and the one above were purpose-built as workers’ accommodation.
Natalie Shang, who represents the landlord, said six units, at this stage, were being converted into short-term accommodation.
She said they were not making any money from the long-term tenants due to repair costs and having to pay power and Wi-Fi bills.
Asked if she was concerned at how hard it was for displaced tenants to find alternative accommodation, she replied, "that’s not our fault".
By converting units into short-stay accommodation "we are thinking we can get some money to cover the cost".
"After ski season, we might do some long-term again."
Mr Irwin said the previous owner had told him there
was no need to go to short-term rentals as it was "a perfectly profitable business" the way it was.
Mr Irwin, who pays his own power bills, said his biggest issue was how tenants were being given 90 days’ notice under section 51(2)(f) of the Residential Tenancies Act on the grounds "extensive alterations, refurbishment, repairs or redevelopment of the premises" were being carried out "and it would not be reasonably practical for the tenant to live there while the work is being done".
He believed it was not a valid reason as he noticed once a unit had been vacated, it was given a lick of paint and the odd bit of new furniture was moved in.
"They’ve also had a spare unit ... they could move people to for one or two days."
Mr Irwin was advised by the council’s building department the area was zoned low-density, so it would be difficult to get 365-days-a-year visitor accommodation approved.
The landlord, he was told, could only let out the unit for short-term accommodation 90 days a year, and needed to register with the council before taking this course.
Subsequently, a council monitoring, enforcement and environmental officer wrote to him confirming the council had not received any registration for visitor accommodation.
The officer said he had sent the property owners a formal letter requesting they undertake any one of four actions to "gain compliance", one of those being to cease operation and remove any online listing for visitor accommodation.
The owners needed to communicate their decision "to avoid escalated enforcement action".
Ms Shang confirmed a letter had been received and the owner had since registered with the council as a visitor accommodation operator.
