VIC Eligible for Compensation Due to Loss of Rental Income?

[Christopher67]

Hi.

I'm wondering if anyone can help here.

I own a mid-century double brick character home in Preston with a shared central wall and roof with my neighbor who's applied for a planning permit to knock down his side of the duplex and build 3 two story townhouses. My wife and I recently bought a second property which we'll be moving to soon and our current residence be rented out.

If the development is approved by council and I'm unable to rent the property due to demolition/ building next door, would I be eligible for compensation for lost rental income from my neighbor?

Any help here would be greatly appreciated.

Thanks,

 

[Rod]

Yes. Though needs to directly affect you and not just be because there is development next door.

 

[Christopher67]

Great.

Thanks for that Rod. I imagine the prospect of the demolition of the joining walls and roof would be enough to put off most prospective tenants or to give existing ones grounds to break a lease resulting in loss of income on our part. That would be directly affecting us sufficiently I expect(?)

 

[Rod]

Putting off tenants is not the same as making your place unlivable.

Your case is easy if they make your premises unlivable.

Not so easy to claim if livable, but no-one wants to rent it. All you can do in this event is gather evidence, keep on trying to rent it out and then put a demand in for damages. If the other party refuses to pay then you consider VCAT/Court.

 

[Christopher67]

Good recommendation. Thanks for your help here. Much appreciated.

 

[Rod]

NP. BTW, I'd be talking to the other party about how he proposes to do his redevelopment without affecting you.

You might be able to strike an agreement whereby he 'rents' your property for x months. Gives him access to the property and makes his life easier. Maybe see about a 20% premium for the privilege. Treat it like a business negotiation.

 

[Christopher67]

I hadn't considered that take on things. Food for thought.

Again, most helpful.

Cheers