With property prices on the rise in Brisbane, Granny Flats offer a cost-effective way to own a second home. These compact units are not only affordable to build and maintain but also provide a host of benefits. One of the most popular advantages is the potential to rent them out. Depending on location and amenities, renting out your Granny Flat could bring in several hundred dollars a week.
This guide outlines the key considerations for renting out your Granny Flat in Brisbane, helping you to maximise your rental potential.
Legal and Regulatory Requirements
Building a Granny Flat
Before building a Granny Flat, it’s essential to obtain a building approval.
Requirements vary across councils, so it’s advisable to contact your local council to understand the specifics for your property. Additionally, there are several building regulations to consider, such as ensuring the dwelling meets fire safety standards by installing smoke detectors.
Specific rules within the Brisbane City Council area include:
- The maximum size of a Granny Flat is 80 square metres, measured around the external walls, excluding patios, decks, and carports.
- The Granny Flat must not cover more than 50% of the site area.
- The Granny Flat can be situated no more than 20 metres from the main dwelling.
By partnering with Urban Granny Flat Solutions, confirmation of relevant council planning approvals and implementation of building codes is built into our process, allowing you to focus on selecting the ideal design, floor plan and features for your Granny Flat.
Renting a Granny Flat
Once your Granny Flat complies with council regulations, you are free to rent it to anyone of your choice. Prior to February 2022, renting to non-family members required a development application. However, as part of Queensland’s Affordable Housing initiative, this is now only necessary if the Granny Flat exceeds 80 square metres or is situated more than 20 metres from the main house.
Tenancy Agreements
A tenancy agreement, or lease agreement, is a legally binding contract between a property owner and tenant. The type of agreement you need depends on the layout of your Granny Flat and the tenant’s access to the main house. If the Granny Flat is fully self-contained, a general tenancy agreement is required. For flats with shared facilities, a rooming accommodation agreement is necessary. For example, if the Granny Flat has two separate rooms occupied by different tenants, or if the flat shares facilities with the main house, a rooming accommodation agreement would apply.
It’s important to clearly define which parts of the property are being rented, the responsibilities for shared areas and maintenance, and rental terms to avoid disputes. Ensure the tenancy agreement includes details about use of water, electricity, gas, and other utilities. If the Granny Flat has its own water meter and is water-efficient, you can charge the tenant for water usage, provided this is stipulated in the tenancy contract.
For further details, consult the Residential Tenancies Authority’s guide to renting Granny Flats.
Maximising Your Rental Income
To attract a broader range of tenants, keeping the interior of your Granny Flat neutral and functional is recommended. Simple improvements like a fresh coat of paint or updated fixtures can significantly enhance its appeal. Setting a competitive rental price based on the Granny Flat’s location, size, and condition will help ensure a consistent flow of prospective tenants.
Landlord Responsibilities
As a landlord, it’s important to treat your Granny Flat rental as a business. This involves maintaining the property and promptly addressing tenant concerns. You are legally obligated to ensure the property remains fit for habitation, and tenants are responsible for reporting any repairs that are needed. Establishing relationships with reliable tradespeople can make maintenance tasks more manageable.
One Solution Building Services are a building service company equipped with a team of skilled tradespeople ready to handle any job, no matter the size. Servicing all of Queensland and northern New South Wales, you can ensure a reliable and quality service should you have any maintenance needs for your Granny Flat.
Engaging a Property Manager
For those new to property management or seeking a more hands-off approach, hiring a licensed real estate agent or property manager can simplify the process. A property manager can assist with finding tenants, handling legal paperwork, conducting property inspections, and communicating with tenants, ensuring that your investment is well-managed.
Key Take Aways
- Granny Flats offer income potential
- Ensure to follow local regulations
- Create detailed tenancy agreements
- Maximise rental appeal
- Keep up to date with maintenance needs
- Consider engaging a property manager
