Secondary dwellings

Property owners can choose to rent out secondary dwellings, such as granny flats, to non-household members.

The property owner must obtain all relevant approvals before renting the secondary dwelling, including development/building and council approvals. Owners must also ensure the rental complies with smoke alarm requirements and all other health and safety regulations.

Property managers/owners must require prospective tenants to apply for a residential tenancy agreement using the approved form that complies with the Act. The standardised tenancy application form is the RTA’s Rental Application Form (Form 22). The application form must not request any information beyond what is specified in the RTA’s Application Form (Form 22). Rules apply to the collection, storage, and destruction of personal information gathered during the application process. 

For more information visit our application process page.

Types of tenancy agreements for secondary dwellings

Depending on the set up of the property, a secondary dwelling may be rented out as either a:

Examples of a secondary dwelling falling under a rooming accommodation agreement could be:

Scenario 1

A rental where a granny flat contains more than one bedroom and each bedroom has been let out separately, with the residents sharing the facilities contained within the flat.

Scenario 2

A rental where the granny flat does not have a kitchen and the occupier is permitted to access the main house to use the kitchen or other facilities.

The agreement must include:

  • the address of the main property
  • what building (or part of the building) is being rented
  • how utilities (including gas and electricity) and water must be paid
  • any special terms (see below).

Property managers/owners must offer tenants/residents at least two options to pay rent. One of these options must not exceed reasonable transactional costs (costs in addition to standard bank transaction fees), and it must be reasonably accessible to the tenant/resident.

Before signing a tenancy agreement, property managers/owners must provide a written notice outlining any associated costs incurred by using the payment methods offered. This is because property managers/owners should be aware of costs associated with the offered payment methods, especially if these costs are not reasonably known by the tenant/resident.

Additionally, property managers/owners must disclose any financial benefits they may receive if the tenant/resident uses a specific rent payment method. For example, if a property manager/owner receives an incentive payment from a third-party platform or a share of the fees charged by the platform, it must be disclosed to the tenant/resident upfront.

Special terms

The agreement should also include any special terms outlining arrangements for: