Landlord fined for operating 'illegal hostel' in Sydney shop

A landlord responsible for operating an illegal hostel in a Sydney shop has been fined $100,000.

On Tuesday Mr Amr Hassan was convicted for transforming an area in the ‘Banana Supermarket’ retail premises in the inner-city suburb of Chippendale into makeshift accommodation, according the City of Sydney Council.

In pictures released by the council the living facilities appear to be disheveled and of a sub-standard condition.

Mr Hassan's conviction was secured by the City of Sydney's Illegal Accommodation Strike Force which was established as part of the city's mission to shut down illegal accommodation providers which the Lord Mayor said "risks the safety of our most vulnerable young residents".

“This case sends a message that illegal, dangerous accommodation networks will not be tolerated in the city, and the people who profit from them will be prosecuted,” the Lord Mayor Clover Moore said.

The City’s investigative specialist, Roy Cottam said, “Amr Hassan had established the largest syndicate of unsafe and illegal accommodation that we have identified in our area to date.”

Mr Cottam said it's hoped the penalty by the court will act as a strong message that this kind of activity will not tolerated.

The investigation team was set up in May last year to uncover "organised illegal accommodation operators" and help people find secure home environments, with the help of members of the NSW Police Force, Fire and Rescue NSW, NSW Fair Trading, the Australian Tax Office and other relevant agencies.

Following the creation of the strike force, authorities say 30 search warrants have been carried out and a number of large-scale illegal accommodation networks have been disrupted.

Also, more than 100 properties have been inspected and $75,000 worth of fine have been issued.