Can I Rent Out a Granny Flat in NSW?

Yes, you can rent out a granny flat in NSW, but only if the development meets certain planning conditions.

Under current NSW planning policy, a secondary dwelling can be rented to anyone, not just family members, provided it was approved lawfully and complies with building regulations NSW.

The key is ensuring the granny flat has been constructed with either a Complying Development Certificate (CDC) or a full DA approval from your local council.

As town planners in NSW, we often work with homeowners looking to build or rent out a granny flat to generate extra income.

The rules are clear in most council areas, but not all sites are eligible. You must meet minimum lot size, access, and services requirements.

A planning consultant can help confirm if your site qualifies and what form of approval is needed.

If you’re unsure how to get a DA approved in NSW for a secondary dwelling, getting early planning advice can save time and cost.

One common misunderstanding we see is the assumption that approval under a CDC is always possible.

In reality, some sites fall outside the State Environmental Planning Policy (SEPP) exemptions and must follow the local Development Control Plan (DCP).

In such cases, you will need to lodge a full development application, including a statement of environmental effects for NSW DA. If your site is in a heritage conservation area, you may also require a heritage impact statement NSW town planning report.

We recently assisted a client in Sutherland Shire who assumed they could build a granny flat under CDC. However, due to bushfire risk zoning, council required a formal DA.

Our town planning services for residential development NSW included preparing the site plan, drafting documentation, and coordinating the council submission for secondary dwelling NSW.

The project gained council approval, and the flat is now legally rented to a young couple.

Renting out a granny flat does not mean it can be separately titled or sold. It must remain part of the main lot.

However, it can have a separate entrance, utilities and address for tenancy purposes. Local councils may vary in how they interpret these details, so engaging a town planner NSW with local experience is essential.

We also provide planning advice for dual occupancy NSW, where similar rules apply but more complex constraints exist.

Whether your goal is long-term rental income or accommodating tenants on a flexible basis, a clear understanding of NSW planning rules is crucial.

A town planner near me specialising in NSW DCP can help ensure your proposal aligns with council expectations.

For those considering resale or investment value, our NSW town planning consultant for subdivision approval can advise if the site may support a future Torrens or strata subdivision, though this is not permitted for granny flats alone.

If you are seeking a low-risk rental solution, and your land meets the criteria, a secondary dwelling is a smart option. Just be sure you have the right approvals before tenants move in.