Are granny flats legal in Australia?
Photo by Dmitry Zvolskiy from Pexels

Have you considered installing a granny flat in your backyard for financial reasons? Renting out space in your backyard can be a nice income earner, but before you sign up, it’s important to know your state guidelines.

As with most things tenancy-related in Australia, the rules around legally renting out a granny flat also differ from state to state.

To help you with the decision-making process, here are some brief state and territory guidelines when it comes to granny flats for rent.

Hot tip: Even if renting out a property like this is legal in your state or territory, make sure you check in with your local council before making any big decisions.

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New South Wales

You can rent it out to unrelated parties in NSW, but the building must be approved by a certified accreditor before they’re erected. If it’s erected and found to be non-compliant when you rent it out, you run the risk of fines, especially if any harm comes to your tenant because of non-compliance.

Victoria and Queensland

Over in VIC and QLD, the 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.

South Australia

Living in 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.

Western Australia, Northern Territory, Tasmania and Australian Capital Territory

You may legally rent out your granny flat in WA, NT, TAS or ACT.

No matter which state or territory you live in, best practice is to check with your local council before you get too far into the process.

Renting out my property on

Once you’ve read the information above and have checked with your local council about the rules and regulations, you might be ready to advertise your property for rent. You can list your property for FREE on Australia’s #1 website dedicated to rental property, or choose from two paid listing options to lease your property sooner. Start listing today. Your advertisement will remain online for eight weeks, and you can re-list it at any time.

Landlord listing tip: Consider listing the property type as ‘Unit’ when you submit your listing.

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