Must Read: Managing and Renting Granny Flats

Property Management,  Property Managers

Stand-alone granny flats are a great option for families to accommodate older children, guests, parents or grandparents. However, they’re not just handy for giving your relatives some breathing room – they can be an easy way to generate income. With a relatively cheap price tag and easy-to-maintain nature, more Queenslanders are seeing the allure of granny flats.

Granny flats are typically defined as ‘secondary dwellings’, meaning they’re built on the same lot of land as the main dwelling. Most commonly, a granny flat is a stand-alone building in the property’s backyard and are ‘self-contained’, meaning they have a separate entrance and their own bathroom, kitchen, bedroom, laundry and living space.

Most council laws will stipulate that without the approval for dual occupancy, the property with a granny flat would require to be rented out as one single premises. This would mean one tenancy agreement, established between the lessor/agent and one household of tenants. A lessor may contact a property manager to request assistance to rent the main house to one household of tenants, and the granny flat to a separate household of tenants. This may require an assessment for a material change of use of the property with the local Council.  Councils may issue show cause and enforcement notices against property owners who separately rent out granny flats without having first complied with council requirements.

Council stipulations and requirements around granny flats can vary between local government areas. Therefore, it’s imperative that agents familiarise themselves with the local laws surrounding granny flats of the area they work in. It’s also essential to request evidence of approval before taking on the management of the property as a separate dwelling.

REIQ Members seeking further advice on this topic or any other property management topic can call the PMSS Team on 1300MYREIQ (1300 697 347) or email pmsupport@reiq.com.au. Not a member? Join us today!

Important disclaimer: This article is provided for general information only, and the author is not engaged to render professional advice or services through this article. Readers should satisfy themselves as to the correctness, relevance, and applicability of any of the above content, and should not act on any of it in respect of any specific problem or generally without first obtaining their own independent professional legal advice.

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