When tossing up on the decision of whether or not to install a granny flat, you might be thinking about doing it for financial reasons – renting it out. You could well be thinking that it’d be good to rent out a little space in your yard as a nice little income earner. But before you go ahead and sign up for a granny flat you will need to take a look at your state and local council guidelines for granny flats.
The rules regarding whether you can legally rent out a granny flat in Australia differ from state to state and even across different municipalities. Here we wrap up some brief state guidelines, but to get into the nitty gritty then make sure to check first with your local council.
New South Wales
Granny flats can be rented out to unrelated parties in NSW. However, granny flats must be approved before they are erected by a certified accreditor. If you erect a non-compliant granny flat and rent it out you run the risk of fines – especially if harm comes to the renter because of the non-compliance of the granny flat. Ensure that you read our Sydney and NSW Regulations section first.
Victoria and Queensland
In Victoria and Queensland, the rules surrounding granny flats differ between local councils significantly. In certain areas, you may not rent out your granny flat. In these cases, the person residing within the granny flat needs to be a “dependent person” i.e. someone like a child or older relative who relies on the person or people living in the main home. Of course, the granny flat may also be used for something like a home office, extra living room, or art studio, too.
It is not legal in South Australia to rent out your granny flat. A granny flat may only be occupied by an immediate family member.
Western Australia, Northern Territory, ACT and Tasmania
You may legally rent out your granny flat in all of these states and territories.
No matter which state or territory you live in, it’s always best to check with your local council before diving in and starting the process of getting your granny flat.
Our designs are made especially with the goal of being compliant with state regulations about granny flat size, materials, etc. Have a look through our regulations sections for more info about how you can be compliant with your granny flat in your home state. For any other questions that you might have, don’t be afraid to pick up the phone and give us a call, or send us through an email. We will be happy to help with any of your concerns.