How to Rent Out Your Granny Flat in WA: 2026 Guide 🏡

ByIqra Kalsoom
A stylish secondary dwelling showing how to rent out granny flat WA legally.

Renting out a backyard granny flat in Western Australia is a great way to make extra money. Also, it helps provide affordable housing for people in busy areas like Perth. In the past, WA laws only allowed direct family members to live in these small backyard homes.

The good news is that the Western Australian government changed these old rules completely. Now, you can legally rent out your backyard flat to anyone you like on the open market. However, you must still follow local council rules to avoid getting costly fine notices.

In this easy homeowner’s guide, we show you how to safely rent out granny flat WA. Learn the latest 2026 Western Australia council rules, simple rental steps, and easy tax tips.

A private tenant moving into an approved backyard secondary dwelling property.

❓ Is It Completely Legal to Rent Out a Granny Flat to Strangers in WA?

Yes, it is 100% legal to rent out granny flat WA to private renters, students, or couples anywhere in Western Australia. The new state planning laws removed the old restrictions that blocked non-family renters from moving into your yard.

However, the building itself must be fully approved by your local council before a renter moves in. It must also be a safe, self-contained home. This means it needs its own private kitchen, bathroom, and laundry space built right inside the unit.

Direct Answer: Yes, WA laws allow you to rent your granny flat to anyone you like. But the flat must have full council approval and contain its own private kitchen and bathroom to be legally rented out.

A completed and legally certified 70sqm granny flat interior highlighting the end goal of a smooth approval process.

📋 What Are the Core Council Rules for WA Rental Flats?

1. Maximum Size and Property Line Gaps 📐

Your small backyard home—officially called an ancillary dwelling in WA—cannot go over a specific internal size. Most local councils cap the total living area at a maximum of 70 square meters.

Also, the building must follow clear distance rules from your fences:

  • Front Yards: The flat must sit safely behind the main front line of your main house.
  • Side Fences: You must leave a clear gap of 1 to 3 meters from your neighbour’s fence line, depending on your local council zone rules.
A compliant 70sqm ancillary dwelling layout showing council boundary setback lines.

2. Public Transport and Car Parking Rules 🚗

The state government removed the old rule that forced owners to build an extra car parking spot for every granny flat. This change makes building on small backyard blocks much easier for everyday homeowners.

However, your car parking rules depend directly on how close you are to public transport:

  • Near Transport: If your house sits within 800 meters of a train station or a busy bus stop, you do not need to build a parking spot.
  • Far From Transport: If you live far away from public transport links, you must provide at least one parking space on your property for your renter.
An on site car parking space matching Western Australia residential R-Code rules.

3. Short-Term vs Long-Term Renting Rules ⏳

You can choose to rent your flat to a long-term renter or list it online as a short-term holiday home. Both paths have very different registration steps under government law.

If you choose short-term holiday rentals, you must follow these quick rules:

  • State Register: You must list the property on the official WA Short-Term Rental Register.
  • Perth Rules: If you rent out the flat while you live in the main front house, you do not need a special planning permit in Perth.

If you are still in the early stages of sketching out your property layout before applying for a permit, check out our layout guide on [70sqm Granny Flat Plans WA: How to Maximise Your Backyard Design].

📊 Standard Rental Contract vs Paying Guest Setup

When you open your backyard to a renter, rent out granny flat WA laws define their status based on your agreement type.

Feature Type

Standard Rental (Official Tenant) 📝

Main Law

Covered by the official Tenancies Act

Privacy Control

The renter has full private rights to the flat

Official Forms

You must use the state Form 1AA paperwork

Bond Money

You must send bond money to the Government

An official Form 1AA residential tenancy agreement for Western Australia rental properties.

🛠️ 3 Crucial Steps to Complete Before Your Renter Moves In

  • Install Separate Utility Meters: Renters hate guessing how much power and water they use. Installing separate sub-meters for electricity and gas lets you charge your renter for their exact bill fairly.
  • Use Form 1AA for Leases: You cannot use generic internet templates or casual notes for a lease in WA. You must print and sign the official Form 1AA from WA Consumer Protection to protect your rights legally.
  • Check Your Local Council Rates: Adding a rental unit changes the rental value of your land. Therefore, expect a slight increase in your annual council rates bill once the flat is built and active.
An individual electric sub meter box installed to track tenant utility bills fairly.

❓ FAQs – Rent Out Granny Flat WA

Yes, you always need a council sign-off before a renter moves into the property. While new state rules mean you might not need a hard planning permit to build a 70sqm flat, you still need a building permit and a final occupancy paper. This paperwork proves the flat is safe and legal for someone to live in.

Yes, renting your flat out to a paying renter changes your tax status. The rent money you collect counts as income, so you must show it to the Australian Taxation Office (ATO). On the bright side, you can claim tax deductions for building wear-and-tear, repair costs, and a portion of your property bills.

You can handle utility bills by setting up separate sub-meters for electricity, gas, and water lines. You then receive the main bill from Synergy or Water Corporation and charge the renter their exact share. Alternatively, you can include a flat utility cost directly inside the weekly rent price, but this must be written clearly in your contract.

No, building a granny flat does not give you the right to automatically split your land block. The flat remains locked to the main house on a single property title paper. If you want to sell the granny flat separately in the future, you must apply for a full land subdivision, which follows very hard council rules.

🏁 Conclusion

Learning how to rent out granny flat WA opens up an incredible extra income stream for your home. Thanks to modern planning updates, the process is simpler than ever before. Just remember to use official Form 1AA rental papers, track utility use with sub-meters, and get final occupancy approval from your council. Smart preparation ensures your backyard rental runs safely and smoothly for years.

To download the latest tenancy templates and lessor guides, visit the official WA Consumer Protection Rental Agreements portal.

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