An Australian family has sought advice on how to get a rent reduction after their landlord reclaimed a huge chunk of their property to install a granny flat.
The family, who have rented in Melbourne’s outer suburbs for several years, said the home was well-suited to their growing family until the owner invested in turning the block into a dual-income property.
The family say that despite losing full use of the property they are still paying the same amount of rent as before the granny flat was constructed.
Granny flats are becoming more popular as property owners look to turn their investments into cash-generators. Picture: Supplied
“One of the reasons we chose the property was because it had a decent-sized backyard with an alfresco area, enough space for our dog, a trampoline for the kids and room for a small garden shed,” the family told Yahoo News.
“Last year, the owner built a granny flat in the backyard. The new building now takes up more than half of the outdoor space. Part of the alfresco area was also removed during construction, and we no longer have enough room for the trampoline.
“We now have a family of four living on the same property, and they share our driveway and access the granny flat through our side gate!
“Our rent has stayed the same, despite losing a large portion of the property we originally agreed to rent.”
The family is now wondering if they are entitled to any kind of rent reduction or compensation after their usable space at the property was significantly reduced.
Maurice Blackburn legal expert Alison Barrett said it sounded like the family had a strong case to seek a rent reduction.
Granny flats can be appealing to owners but less so for existing renters. Picture: John Appleyard
“In Victoria, if a landlord significantly reduces what you can use or enjoy during a tenancy, you may be entitled to a rent reduction and potentially compensation,” she told Yahoo News.
“Whether you succeed will depend on what your lease says, how much space you’ve lost, and how the works were carried out.
“If the backyard, alfresco area and exclusive use of the driveway were part of what you originally leased, the landlord cannot simply take a large portion of that away mid‑tenancy without consequences.”
Ms Barrett said the family should formally request a rent reduction through the listing real estate agent or property manager before using the Victorian Civil and Administrative Tribunal (VCAT) if their request is refused.
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