Turning Your Granny Flats into a Steady Stream of Income

September 13, 2023

Granny flats which are also known as Accessory Dwelling Units (ADUs) have been increasingly popular in different parts of Perth, WA because they can be built at a much less cost compared to a traditional house in just a matter of weeks.


They are considered small homes but with big advantages. With the recent changes in the laws in Perth regarding Granny flats, aside from adding extra living space for your family, they can now also be turned into an income-generating property!


In this article, we will lay down options on how you can get your return on investment (ROI) on your Granny Flats.

Granny flats lounge room

How to Generate Income from Your Granny Flats

If you are planning to turn your granny flat into a source of income, here are some ways to get you started:


Long-Term Rentals

One of the most common ways to gain income from your granny flat space is by converting it into a long-term rental. With the increase in demand for affordable housing, many people are looking for rental properties. By renting out your granny flat on a long-term basis, you can make it a steady source of income.


Short-Term Rentals

If you are opting for a much more flexible renting out option and you do not want long-term rentals, you may consider turning your granny flat into a short-term rental. You may do so by listing it on rental platforms or short-term rental websites like Airbnb. This will allow you to rent out your space on a temporary basis like on a night or weekly basis to travellers, tourists, or individuals in need of temporary accommodation.


This option can provide you with a higher income compared to traditional long-term rentals. However, managing short-term rentals will require more effort on your part as you need to equip your granny flat with appliances and furniture, handle booking requests, do regular cleaning, and provide amenities like toiletries and basic supplies.


Home Office or Studio Space

Turning your granny flat into a home office or a studio can also help you generate income. With the rise of remote work and demand for dedicated remote workspaces, you can rent out your granny flat as an office or a studio. You can cater for this type of rental by adding other amenities like a high-speed internet connection and a separate entrance for privacy.


Vacation Rental or Retreat Space

If your granny flat is located near a tourist attraction location or in a desirable destination, considering a vacation or retreat space rental can make your granny flat a source of income.


Many tourists or groups look for private accommodations to enjoy a relaxing getaway. By furnishing your granny flat and promoting it on rental sites and platforms, you can attract renters and generate income, especially during peak seasons.


You may also promote nearby attractions, outdoor activities, or any unique features nearby your property to make your property stand out from the competition.


Student Boarding Accommodation

If your property is located near a University, you may consider turning your granny flat into a student boarding accommodation to generate income. This is a perfect option if you want to use your space for other things in other parts of the year because they are vacated during summer and holidays and still earn income.

Conclusion

With the recent changes in the guidelines for renting out granny flats in Perth and the increase in demand for much more affordable renting options, you can turn your granny flats into a steady source of income and can help you get your ROI in no time!


Before you start renting out your granny flat, make sure to research the local guidelines where your property is located to ensure compliance and know which type of renting-out option you can offer and which would be best suited for your location.


Consider the needs and preferences of your potential tenants or guests, you may include various amenities, and features, and promote nearby attractions to help you attract many tenants or guests.


With proper research and planning, you can turn your granny flat into a profitable investment and can also increase the overall value of your property!


If you are planning to create a granny flat on your property, you may contact Prestige Renovations and Granny Flats


Prestige Renovations and Granny Flats can turn your Granny Flat space into a stunning and bespoke living or rental that will perfectly suit your budget and specifications!


Call us today and get a free quote!

October 27, 2025
Granny flats are no longer just for grandparents. Across Australia, they’re being built as rental units, guest accommodation, or smart add-ons for multigenerational families. Climbing property prices and limited housing supply have made granny flats an attractive option for homeowners seeking flexibility and extra income. Before you build, there are legal and planning steps to navigate. Each state has its own council rules, and the approval process can feel overwhelming. Prestige Homes & Granny Flats provides practical guidance on paperwork, design, and construction, keeping your project organised and on track from the start. Before you start asking what granny flats are and how to build one, remember there are legal and planning steps to navigate. Each state has its own council rules, and the approval process can feel overwhelming. Prestige Homes & Granny Flats provides practical guidance on paperwork, design, and construction, keeping your project organised and on track from the start. What are Granny Flats? So what is a granny flat? The answer is simple. It’s a small, self-contained home built on the same block as a main residence. Think of it as a compact version of a regular house, usually including a kitchen, bathroom, living area, and one or two bedrooms. Most states cap their size at around 60 m², though exact limits vary. In Queensland, they’re often called “secondary dwellings,” while in Victoria, you’ll hear “dependent person’s unit.” No matter the name, the idea is the same: extra living space with independence built in. What Are Granny Flats Called in Perth? Across Perth and the wider WA region, granny flats are formally classified as “ancillary dwellings” under local council planning regulations. They’re permitted on most residential-zoned blocks that meet the minimum land size, with a maximum floor area of up to 70 m². A major difference in WA is who can occupy them. Since 2015, Perth’s rules have allowed ancillary dwellings to be rented to non-family members, giving homeowners more flexibility for rental income or family use. Councils such as the City of Perth, City of Stirling, and City of Joondalup apply these state planning guidelines, though it’s always worth checking your local council’s requirements before starting. In Perth, granny flats can take several forms. They may be built as a detached unit, joined to the main house, or created by converting existing structures like garages. This flexibility makes them an appealing way to add space, boost property value, or create rental income without leaving your current suburb. What Is Granny Flat: Legal and Planning Rules You Need to Know To fully understand what granny flats are, you also need to follow council regulations that vary from state to state. Zoning and Land Use Your block must be in the correct residential zone to allow an ancillary dwelling. Perth councils set these rules, so it’s important to confirm land use requirements before drawing up plans. Size Limits & Design In most parts of Australia, granny flats are limited to 60 m². In Perth and wider WA, ancillary dwellings can be up to 70 m², provided they meet council design codes for height, setbacks, and appearance. Approval Processes Some states require both planning and building permits, while others fast-track approval if certain criteria are met. In WA, approvals generally move faster when plans follow the Residential Design Codes (R-Codes) . Rental & Occupancy Rules Unlike some states, Perth homeowners can lease ancillary dwellings to non-family members. Since the 2015 policy change, this flexibility has allowed granny flats to serve as either rental income properties or extra family space.
October 24, 2025
Building your own custom home in Australia is exciting, but it can sometimes feel like you’ve got a lot on your plate. From design choices and council approvals to budgets and timelines, there are plenty of moving parts that can quickly become overwhelming. That’s why having a clear checklist is important. We’ll guide you through the key steps in building a custom home checklist. Whether it is your first build or an upgrade to suit your lifestyle, our team helps you stay organised and confident right through to the final handover. Building a Custom Home Checklist Think of a custom home checklist as your blueprint for staying organised. It turns the chaos of construction into a sequence of manageable steps. Without a checklist, you could face delays, unexpected costs and unnecessary stress. A detailed custom home build checklist ensures a smooth, cost-effective and worry-free build. It’s not just for first-time owners either. Even seasoned homeowners upgrading to a custom space benefit from a structured approach that keeps the build on track and aligned with their vision.
September 9, 2025
Building a new home? This guide breaks down the real differences between a custom builder vs volume builder to help you choose the right experts for your build.
DA vs CDC house plan approved for construction.
August 22, 2025
DA vs CDC approval can make or break your project timeline. This blog explains what suits your build, what delays to watch for and how to speed things up.
June 25, 2025
Make the most of your land with dual key homes. We break down the pros, cons and expert tips to help you decide if it’s the right move for your block in WA.
cost to build custom home
May 28, 2025
Planning your dream home? We've unpacked the factors that affect the cost to build a custom home in WA, with tips on budgeting to avoid surprise expenses!
building a house on a narrow lot
April 15, 2025
Discover the benefits of building a house on a narrow lot! Learn about smart designs, vertical spaces and creative layouts to make the most of your property.
modern granny flat designs
March 15, 2025
Looking for modern granny flat designs? Explore top styles, smart layouts and must-have features for a stylish, functional and energy-efficient living space.
what adds value to your house
March 15, 2025
Learn what adds value to your house before you build! From stylish builds to energy-efficient features, get expert tips from Prestige Renovations!
granny flats in wa no longer need council planning approval
February 19, 2025
Understand how to process a granny flat approval in WA with no council approval needed. Find out if your property qualifies and expert guidance to make it possible.