City of Sydney council has called for greater powers to investigate dodgy uses of property after a industrial fire unearthed a makeshift slum.
Fifteen foreign nationals had a lucky escape in the early hours of Wednesday after the Alexandria industrial property in which they were living went up in flames.
The young people were paying up to $130 a week to live in caravans, a shipping container and a minibus at the back of the property.
The renters shared one portaloo toilet at the lodging, which was advertised online.
The illegal living conditions outraged emergency services, who labelled them squalid.
A charity is helping some of the rescued renters with emergency housing while others are organising their own.
City of Sydney says it had no record of any complaint about the property, which is zoned as a business park.
But such complaints are not uncommon, with council investigating more than 1000 reports of unauthorised property use and overcrowding in the past year.
"Overcrowding and the use of premises as unauthorised short-term accommodation is an ongoing issue for many local councils," a council spokeswoman said.
City of Sydney has used the Alexandria squalor to call for greater powers to tackle the illegal accommodation problem.
When following up a illegal-use complaint, council sends a notice of entry to inspect a property, which tells the resident when the inspection will occur.
If all else fails, council can apply for a search warrant, a spokeswoman said.
"This can be difficult to show if council officers have been refused access as their ability to gather evidence is compromised and evidence of illegal use may be removed before an inspection," she said.
"In our submission to the NSW Planning System Review, the City urged the NSW Government to consider giving Council officers greater powers to investigate and enforce breaches of the Act."
The fire and the property owner, Masaaki Imaeda, are still under investigation by council and police.
A NSW planning and assessment spokeswoman said given the site was zoned for industrial use, housing would be prohibited.
The maximum penalty for a breach of the EP and A Act is $1.1 million.
Following the discovery there are calls for a parliamentary inquiry into illegal housing in NSW, the ABC reports.
