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Investigators were shocked to find 58 beds crammed into 19 dirty, makeshift rooms in a three-bedroom house in Ultimo.
In the past six weeks, the squad has executed 20 search warrants. They found 10 people shoehorned into one bedroom, tenants sleeping in bathrooms, and in one case, a pantry.
They also discovered: "Overcrowded apartments with blocked drains full of excessive amounts of hair and putrid smells in all rooms", "kitchens with serious cockroach infestations", and "a hallway converted into a makeshift shower cubicle".
Most illegal accommodations are believed to be in a five-block radius from Town Hall station.
Sydney Lord Mayor Clover Moore announced the council was redoubling its efforts to stamp out illegal accommodation providers, joining forces with NSW Police, Fire and Rescue NSW and NSW Fair Trading.