Hi I fear I have made a grave mistake with my Logan IP. The current tenants are moving out of the 3bdr highest at the front of the block, and coincidentally I have decided to divide the property and build a granny flat at the rear. I will be removing half the backyard from prospective new tenants as well as about 4m of side access on one side of the house. The entire block is a rather large 1400sqm and I will be leaving approx 700sqm total land for the current dwelling grounds. So I instructed the PM to drop the rent by $40pw and advertise the front dwelling as if they have already lost half their backyard... i.e. contract specifically states the boundary of their backyard so I can put up a fence at my leisure when I'm ready to start construction, without any argument. The PM agreed that this would be a fair discount, as they still have an average suburban size backyard remaining. At the first open house this past weekend she reported a strong attendance with 13 groups through. Upon inspection, each and every one of the prospective tenants baulked at the prospect of losing half the backyard and enduring construction on the other side of the fence (even after the PM explaining the reduced rent deal on the phone before they came to inspect). Alas, no takers... Should I drop the price and/or instruct the PM to canvass offers and take a hit while I construct? Should I increase back up to full market price with full property access and sign tenants up to 6 months, meanwhile getting everything fully prepared for construction from day one of the expiry of the 6 month lease? At least if the next tenants disagree with losing half their backyard I will be in a position to construct as soon as possible and minimise potential vacancy. Or the tenants may like where they live enough to compromise on losing half the backyard. I'm sure I wouldn't have such a problem if the fence was already up with construction complete. It just seems as if there is a psychological barrier where they can't cope with losing something from their rental, or are too concerned about construction next door. Any suggestions? Has someone had experience with this? How have people managed constructing a second dwelling whilst keeping the original dwelling tenants happy?