New Changes to the rules covering granny-flats in WA now allow home owners to rent them out to tenants other than family members. The move was designed to ease the crush on rental housing in the resource-rich state making it easier for home owners to earn money from tenants.

The new regulations mean granny-flats can be built in all residential zones as long as there is no more than one main home and one granny-flat on the same block.The size of the granny-flat can be no more than 70 square metres – or the maximum allowed by the council, if it is different.

The allowable floor space for granny-flats would increase to provide flexibility for families to invest in and rent out a granny-flat to students and seniors as a safe and affordable option. At the moment, granny-flats must be used by family members or the home owner themselves. By scrapping this old restriction, so called empty nesters and seniors can unlock equity in their homes and receive a regular income, or provide space for a carer to live close by in their aging years.

There is also potential for students and young people looking for affordable accommodation to rent granny-flats. Normal planning requirements around setbacks and density will continue to apply, but this change will introduce more flexibility and introduce more rental accommodation to the real estate market in Western Australia.