If you’ve got a granny flat sitting in your backyard, you could be sitting on a valuable income opportunity. Many Perth homeowners are turning to granny flat rentals as a way to make extra money while making better use of their property.
As a local granny flat builder in Perth, we work with homeowners every day who are designing and building flats with rental potential in mind. If you’re thinking about doing the same, here’s what you should know about getting your space rental-ready and what steps to take.
Why More Homeowners Are Renting Granny Flats in Perth
Perth’s rental market is tight, and there’s growing demand for affordable, self-contained spaces. Whether you have a finished flat on your property or are thinking of building one, renting it out can offer several long-term benefits.
- Generate passive income without buying a second property
- Make use of underutilised land on your block
- Increase the overall value of your home with a dual-occupancy layout
- Offer flexible living arrangements for changing life stages
And thanks to recent changes in WA’s planning regulations, renting out your granny flat is easier than ever.
What Are the Rules for Renting a Granny Flat in WA?
In the past, granny flats in WA could only be occupied by family members. But updated regulations now allow homeowners to rent their flats to non-family tenants — a big win for flexibility and affordability.
The WA Government’s 2024 planning reforms have made it simpler to rent out a compliant granny flat without needing additional council approval in many cases. However, these rules can vary slightly by local council.
Before you rent out your granny flat, we recommend checking with your local authority or visiting wa.gov.au to confirm what applies in your area.
Please note: We do not offer legal or compliance advice. Always seek guidance from a qualified professional to ensure your rental meets current regulations.
Is Your Granny Flat Ready for Rent?
Before you start advertising, take a moment to assess whether your flat is truly ready for a tenant. Here’s what most renters will expect:
1. Privacy
Tenants want to feel at home. Consider adding fencing, landscaping, or a separate gate to create a private entry. A separate letterbox and pathway also go a long way in making the flat feel independent from the main residence.
2. Comfort
Your flat should be fully self-contained with:
- A kitchenette or full kitchen
- A bathroom and toilet
- A living and sleeping area
- Laundry facilities (in-unit or shared access)
If your current setup doesn’t offer these features, it may be time to consider a renovation or rebuild.
3. Compliance
Even if your granny flat was built years ago, it’s wise to confirm it still complies with WA’s residential building standards. A quick check with your council or a planning advisor can give you peace of mind before listing it for rent.
How Much Rent Can You Charge?
Setting the right rental price depends on a few key factors:
- Location – Some Perth suburbs demand higher rent
- Size – Studio, one-bedroom, or two-bedroom layouts all attract different rates
- Condition – A modern, well-maintained flat will command more
- Features – Air conditioning, private yard, off-street parking, or furnished options can increase appeal
To stay competitive, browse listings for similar granny flats for rent in Perth to see what’s being offered in your area.
Please note: We are a builder and do not offer rental or financial advice. Always seek guidance from a qualified professional for advice.
How to Attract Great Tenants
You don’t need a massive marketing budget to get results — you just need the right approach.
Write a Clear, Honest Listing
Highlight the flat’s best features, such as a quiet location, modern finishes, or private entry. Be upfront about things like shared driveways or laundry access to avoid surprises later.
Use Great Photos
Well-lit, high-resolution photos help your listing stand out. Include shots of the living area, bedroom, bathroom, kitchen, and outdoor space.
Post on the Right Platforms
Popular options for granny flat rentals in Perth include:
Should You Manage It Yourself?
Some homeowners choose to self-manage their granny flat rental, while others prefer to work with a professional property manager.
DIY Management
Pros: No management fees, full control, direct contact with tenants
Cons: Time-consuming, need to manage maintenance, responsible for legal compliance
Property Managers
Pros: Handle marketing, tenant screening, inspections, rent collection, and tenancy laws
Cons: Typically charge 7–10% of the weekly rent
The best choice depends on your availability and comfort level with managing tenants and understanding legislation around tenancy.
Design Tips: Build a Granny Flat That Rents Well
If you’re still in the planning stage, now’s the time to think about future rental appeal.
As a granny flats builder in Perth, here’s what we recommend for dual-purpose or rental-ready designs:
- Soundproofing – Helps maintain peace between tenants and main house
- Storage space – Built-ins, kitchen cabinetry, and clever shelving are always appreciated
- Outdoor access – A private patio or courtyard adds lifestyle value
- Neutral styling – Keeps things clean and move-in ready for a wider tenant base
- Energy-efficient appliances – A bonus for tenants and resale value down the line
Tip: If you’re planning to build soon, check out our full guide on what to expect when building a granny flat in Perth.
Final Thoughts
Renting out your granny flat in Perth can be a brilliant way to boost your income and increase your property’s flexibility. The key is to make sure your flat is well-designed, comfortable, and meets the relevant council requirements.
If you’re not sure where to start — or you’re thinking about building a new granny flat with rental potential — we’re here to help. As local experts, we’ve built lots of granny flats in Perth WA designed specifically with future tenants in mind.
Ready to Build or Rent Out a Granny Flat?
Let’s chat about how to make the most of your property. Whether you’re designing from scratch or upgrading an existing granny flat, we can help you create a space that works for you and your future tenants.
