Secondary Dwellings

1 Mar 2024

Property owners can choose to rent out secondary dwellings, such as granny flats to non-household members. It’s important that property owners discuss all terms of an agreement with tenants/residents and ensure the property meets the required standards. 

Transcript

Host - Belinda Heit - People and Culture

Guest - Susan Cridland - Customer Experience

Host: Welcome to the Talking Tenancies Podcast, brought to you by the Residential Tenancies Authority. I'm your host Belinda Heit. Join me as we explore everything you need to know about renting in Queensland, with experts from the RTA and industry. We're here to help make renting work for. Everyone. Property owners can choose to rent out secondary dwellings, such as granny flats, to non-household members. It’s important that property owners discuss all terms of an agreement with tenants/residents and ensure the property meets the required standards. Welcome, Susan.

Guest: Thank you so much for having me.

Host: Now, can you tell us about your role at the RTA and what you're responsible for?

Guest: Yeah, certainly. So my role is Acting Senior Team Leader in our customer contact centre. So I'm responsible for a number of operations, but mostly helping to look after our teams who help assist our customers.

Host: And what an amazing job you do, by the way. Now, today you're joining us back again by popular demand. We're going to talk about secondary dwellings when renting in Queensland. Let's start off with, like, what is a secondary dwelling?

Guest: Thank you. Great. So, a secondary dwelling or a granny flat is typically a self-contained unit or a studio containing a bedroom, with or without dividing walls, a kitchen area and a bathroom.

Host: It sounds so simple, but it does get complicated, doesn't it?

Guest: It does, yes.

Host: So, what do property owners need to consider before renting out a secondary dwelling.?

Guest: Property owners need to obtain all relevant approvals before renting the secondary dwelling, including development, building and council approval. Owners must also ensure that the rental complies with smoke alarm requirements and all other health and safety regulations.

Host: I'm curious then, what kind of tenancy agreements apply to these secondary dwellings?

Guest: Depending on how the property is set up, a secondary dwelling may be rented out as either a general tenancy agreement, so that's if the secondary dwelling is let out as a self-contained unit and the tenant or resident has no access to the main house. Or, a rooming accommodation agreement, and that's where the tenant or resident shares the kitchen or other facilities with other occupants of the house. So ,some examples that might fall under a rooming accommodation agreement include 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. Or, a rental where the granny flat does not have a kitchen and the occupier is permitted access to the main house to use the kitchen or other facilities. Now, the agreement must include the address of the main property, what building or what part of the building is being rented, how utilities (including gas and electricity and water) must be paid and any other special terms. And when it comes to those special terms, these must be outlined in the agreement to cover things such as access to the dwelling, parking spaces, mail management, access to and use of the clotheslines and rubbish bins, internet charges and pool or garden maintenance.

Host: So many things to consider there. It's really important that you actually get your details all written down on paper.

Guest: Absolutely.

Host: Now, minimum housing standards were introduced to ensure rental premises are safe, secure and functional from 1 September 2023 for new tenancies, and from 1 September 2024 for existing tenancies, does this also apply to secondary dwellings?

Guest: Yeah, that it does. Secondary dwellings are not exempt from the prescribed minimum housing standards. The options available for the tenant or resident if the property does not meet minimum housing standards vary depending on the agreement type.

Host: That's good to know. So, this one's tricky. What address should be used to identify the secondary dwelling on the property? Do they have to have separate mailbox?

Guest: It's an excellent question. To clarify the primary address of the property, you can contact your council, who can confirm the street number or name prior to signing the agreement. You do need to discuss how mail will be handled and include those details in the agreement.

Host: Now we were talking about utility charges before, but how is water charging and other utilities handled with the secondary dwelling?

Guest: The type of agreement that covers secondary dwellings will indicate how or if water and other utilities can be charged. There are no specific requirements that relate only to secondary dwellings. For example, under a general tenancy agreement, a tenant cannot be charged for water unless the premises are individually meted. So, it's important to discuss how water and other utilities will be managed in a secondary dwelling, and that they are outlined clearly in the agreement before signing. If the premises has gas cylinders and the owner believes that the tenant or resident is responsible for any fees relating to that, they could be considered as a service charge. The matter should be discussed, and any arrangements must be included as a special term in the agreement.

Host: Oh, it's so important to talk to each other on these things, isn't?

Guest: Definitely.

Host: So, who takes care of the garden maintenance with the secondary dwelling on a property that's shared with the owner?

Guest: Well, both parties actually have obligations at the start, during and at the end of the tenancy, so any special requirements should be outlined in the special terms of the agreement. These requirements should be as detailed as possible and include details such as areas for which each party is responsible and who supplies and maintains equipment. And this should avoid any confusion or disputes between parties. So again, talk to each other and just ensure that these obligations are understood.

Host: Well, when it comes to secondary dwellings, the devil is in the detail it seems. Thanks Susan, for helping us to get a greater understanding on what we need to know when it comes to secondary dwellings when renting in QLD.

Guest: Thank you so much, you have a great day.

Host: Thank you for listening to the Talking Tenancies Podcast. For more information about the Residential Tenancies Authority, visit rta.qld.gov.au.

Original publication on 01 Mar 2024
Last updated on 01 Mar 2024

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