Granny Flats

We all know who they were initially intended for, but granny flats can be so much more than a place for granny to live.

How can a granny flat add value to your property?

Granny flats are a smart way for homeowners to add value to their property. Whether it be through short-term leases or tax reduction opportunities, a granny flat investment presents a range of ways to bring extra value to your property portfolio.

Rental return

Perth is currently in the midst of a rental shortage that shows no signs of easing. With a vacancy rate of just 0.4% – the lowest in over 40 years, there’s never been a better time than now, to look at adding a granny flat to your backyard as a rental opportunity.

Modern design and interior luxuries make granny flats attractive rental options for everyone from students to working professionals. There’s also the popularity of short-term holiday accommodation with websites such as Airbnb which make it incredibly easy for homeowners to offer their granny flat investment as holiday accommodation.

The granny flat experts at Summit Granny Flats can help make sure your investment meets all relevant approvals for rental properties. Granny flats can be rented out to generate extra income in Western Australia, NSW, the Northern Territory, Tasmania and the ACT, but not in Queensland, South Australia or Victoria.

The amount of rent you can charge varies, depending on the size of your granny flat and your location.

Add value to your home

When it comes time to sell, a second dwelling on your property is a huge bonus. Potential buyers with teenage or adult children, or ageing parents will see the appeal in a separate self-contained home on the same title.

A Granny flat may also appeal to those wanting a home office or studio, and those who want somewhere comfortable for guests to stay.

Depreciation schedule

Just like any other investment property, a granny flat investment should be able to give you significant deductions come tax time. Ask your accountant or a depreciation expert for advice.

Can I Build a Granny Flat on My Property?

Great question! Whether or not you can build a granny flat on your property in Western Australia depends on several factors:


First and foremost, you’ll need to find out if your property is zoned for the construction of a granny flat. Most residential zones do permit this, but you should confirm with your local council or a town planner.

Property Size

The Government of Western Australia requires your block to be at least 350 square meters to build a granny flat on your property, however, often blocks of this size are still too small for other reasons like yard size. In most cases, the minimum block size to build a granny flat is closer to 450 square metres.

Space Requirements

The granny flat itself can be up to 70 – 100 square metres subject to shire and zoning requirements. You must also adhere to certain setbacks from your property boundary.

Utility Connections

Think about utility connections like water, gas, and electricity. Sometimes, your existing connections will suffice, but in other instances, you might need to upgrade.


Remember, if you need to finance a granny flat build, you must be the landowner of the primary residence. However, in many cases, an arrangement is made where the granny flat dweller has the legal right to live on the land via a written contract. A common scenario is between children and their elderly parents. In such cases, the family member(s) have a “granny flat interest” in the property, granting them the legal right to live in the granny flat for the duration of their lives.

Approval Process

Lastly, you will need to get council approval for most granny flat projects, although some pre-approved designs can fast-track this process. Our standard granny flat designs will comply and fast-track shire approval subject to the site e.g.: levels, setbacks etc.

Ready to start building a granny flat?

If the idea of increasing your property value sounds like something you are interested in, here is a little checklist to help you get through the next steps of researching & planning for a granny flat. You can get through most of these today!

  1. Decide what you’ll use the granny flat for – rental income, family, or something else.
  2. Roughly figure out how much you’re willing to spend.
  3. Do a quick online search to see if your local council allows granny flats.
  4. Measure or check your property size to ensure it’s at least 350 square meters (the minimum in WA) but ideally larger than 450 square metres.
  5. Speak to Experts. Make a call to a local builder to gauge the feasibility of your project. We know a Perth home builder with an excellent reputation who would love to get you started. Give Summit Granny Flats a call today!