Terang's aged care hostel is being sold after it was closed earlier in the year

The hostel is among many similar rural facilities struggling to meet new rules on staffing, especially the requirement to have a registered nurse on hand at all times.

The 40-bed hostel was opened in 1979 and present owners Lyndoch Living took it over in 2018 from Mecwacare.

Lyndoch Living committed itself to helping residents find alternative accommodation locally.

Lyndoch chair Sue Cassidy said as well as the difficulties of attracting skilled staff the Terang hostel had experienced falling occupancy rates over the past 18 months.

"Increasingly older people prefer to remain in their own home and this has impacted occupancy levels at May Noonan," she said.

At one stage the home was down to 18 residents.

The company had offered residents rooms at Lyndoch Living in Warrnambool, about 50km to the south-west.

"The board intends now to sell the May Noonan site and focus on securing a long-term future for the larger Lyndoch facility in Warrnambool," Ms Cassidy said.

Lyndoch is the largest provider of public aged care beds in Victoria's south west.

Local agency Charles Stewart is running the sales campaign for the hostel.

Agents suggest possible uses for the sprawling complex was as worker or backpacker accommodation, school camps, or tourism/ hospitality businesses.

The complex has 40 single accommodation rooms, 32 with shared dual bathroom facilities and eight with ensuite bathrooms.

It has a commercial kitchen and laundry, large dining area and several lounges plus numerous office and utility rooms.

"The property presents in excellent condition and will readily adapt to any one of a number of alternative uses."

The building sits on 1.76 hectare site and includes excellent shedding amongst landscaped gardens.

It is for sale by expression of interest closing on Wednesday, October 18.

For more information contact Anthony McDonald on 0418 593597 and William Lord on 0434 239772.