Granny flats can be an excellent income earner, however the rules around legally renting out a granny flat, differ from state to state.
Always check with your local council before making any decisions and don’t forget to use RealRenta to automatically manage the tenancy:
NSW
Landlords can rent it out to unrelated parties in NSW, but the building must be approved by a certified accreditor before erected. If it’s erected and found to be non-compliant, you run the risk of fines, especially if any harm comes to your tenant because of non-compliance.
Victoria
Rules vary significantly between local councils. In some areas, you will not be permitted to rent out your property. In these cases, the person living in the building needs to be a ‘dependent person’ – this could be your child or an older relative and they must rely on the person living in the main house. Otherwise, the property may be used for something like a home office, an extra living room or even an art studio.
QLD
Rules vary significantly between local councils. In some areas, you will not be permitted to rent out your property. So, in these cases, the person living in the building needs to be a ‘dependent person’ – this could be your child or an older relative and they must rely on the person living in the main house. Otherwise, the property may be used for something like a home office, an extra living room or even an art studio.
SA
It is not legal to rent out your granny flat in this state. The building may only be occupied by an immediate family member
WA, NT & ACT
You may legally rent out your granny flat in WA, NT, TAS or ACT.
Get all the benefits of RealRenta’s ledger by using RealRenta Essential- a completely FREE version of RealRenta.
RealRenta Essential enables property investors to take advantage of RealRenta’s ledger systems by manually entering in all transactions.
RealRenta Essential provides investors with all the benefits of the RealRenta platform, minus the automation.
To take advantage of RealRenta Essential, all you have to do is choose the "Free” option when you upload a lease agreement.
Marlene Liontis
Saturday, 20 April 2019
