History has a habit of repeating itself… there was once a a time when having a granny flat and renting it out was a standard Australian tradition. Over time, they gradually became out of fashion, however what once was old is new again and they’ve made a triumphant return in recent years. The NSW government in particular is encouraging homeowners to build and rent out granny flats and savvy homeowners are more than happy to oblige! If you are considering adding a granny flat to your property as an investment and renting it out, there are a few tips we’ve gathered to help with the process.

Granny Flat Incentives

• A complying granny flat may be approved by council or accredited certifier within 20 days (for more information on what complies see this article)
• Permission to build granny flats in all residential areas in complying blocks of landing with a minimum 450m²
• Provision of clear, easy to understand standards of granny flat construction.

Granny Flat Restrictions

• A granny flat may be included in a new home design or added to an existing dwelling.
• It can be an integrated part of your house (e.g. a home with attached granny flat), but must be a self-contained dwelling with separate entrance, bathroom and kitchen facilities.
• Only one house and one granny flat are permitted on a property.
• The granny flat may not exceed 60m² in size or the size prescribed by your local council
• The granny flat must comply