Whether you're looking to earn some additional income or you're just wondering what to do with this extra space you no longer need, renting out your granny flat could be a great option for you.
So, what is actually considered a granny flat and can you list one as a rental property in the Nelson Bay region? Read on to find out more about the local laws and regulations surrounding this.
What Is A Granny Flat?
A granny flat is considered a small and separate building away from your main house traditionally built for an elderly parent/s or relatives to live or stay in long term, which is where the name originated from.
A granny flat is usually self-contained, meaning it contains a kitchen and bathroom as well as living space. These facilities would typically be very compact.
Can I Rent Out My Granny Flat In Nelson Bay?
The short answer is yes, it is legal for you to rent out a granny flat in Nelson Bay. There are some rules and regulations that you will need to follow, however, so make sure to read up on these before you consider advertising your granny flat for rent.
Regulations Around Building Or Renting Granny Flats
Any kind of granny flat or secondary living space needs to be approved before you can begin building. To be rented out, the space has to be self-contained, meaning it has to have its own kitchen and bathroom to make it livable.
You can read up more on the specific NSW regulations online here.
If you are planning on renting the granny flat to someone outside of your family, you will also need to be aware of the tax implications of this. Any earnings will need to be reported to ensure you are paying the correct tax. If you are renting to somebody within your family, however, there are exceptions.
Benefits Of Renting Out Your Granny Flat
Renting out your granny flat is a great way to earn some extra income for minimal work. The amount you could earn will depend on the size of the flat and what features it includes. If you are building a granny flat from scratch for this purpose, it could help to look into what features could improve potential earnings.
A granny flat can also be a great choice as approval to build can be given in as little as three weeks. Additionally, having a granny flat on your land is a great way to improve the value of your property in the event that you decide to sell in future.
Who Can Help With The Renting Process?
Renting out your granny flat can be a confusing process, especially if you haven’t been a landlord before or don’t have experience in property management.
This is when Nelson Bay Real Estate is here to help. With almost four decades of experience, we know all the ins and outs of real estate and property rental and can make managing your tenants and paperwork much easier.