In this blog we explain all you need to know about Granny Flats in Queensland...

This video/blog is great for - QLD property owners, real estate agents & mortgage brokers who want to know more about Granny Flats in Queensland!

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Hi everybody - George Sourris, Empire Legal.

Today's topic: Granny Flats in Queensland (QLD).

On Friday the 23rd of September, back in 2022 (during COVID), the Queensland Government announced that property owners are able to rent a secondary dwelling, such as a granny flat, to non-household members.

Previously, the majority of local councils would only allow granny flats to be tenanted by family members of the main home. But as of late 2022, these laws have changed. This was a result of the housing crisis, with the Queensland Government announcing that for the following three years, your granny flat is now legally allowed to be rented out to any persons of your choice (yay)!

The majority of the information for this blog was found on the Residential Tenancies Authority (RTA) website. If you want to know more, I encourage you to click the link above and read up on granny flats or second dwellings.

What is a secondary dwelling?

The most common form of secondary dwelling is a granny flat. A secondary dwelling is an additional dwelling located within, attached to, or separate from the main dwelling located on the same lot of a property. It is usually smaller than the main dwelling space. Any new secondary dwellings (granny flats) will require building approval and you will still need to speak with your local council to understand if you need development approval, prior to building.

The same goes for existing structures that you may want to convert into a granny flat. Local councils will have different rules in relation to building approvals, so it's best to chat with your local council to see what is and is not possible with your property, BEFORE starting construction. The good news is that changes have been made for anyone to be able to rent a secondary dwelling for all local council areas across Queensland. We suggest contacting your local council for specific information, if you're thinking of going ahead with this.

A secondary dwelling may be self contained, or may share facilities, such as a kitchen, with a main dwelling. So, what do property owners need to do before renting out a secondary dwelling? The property owner must:

1) obtain all relevant approvals before renting out a secondary dwelling, including ensuring they have development and building and council approvals; and
2) Ensure the secondary dwelling complies with smoke alarm requirements and fire safety, as well as other health and safety regulations. 

What tenancy agreements apply to renting out a secondary dwelling?

The type of tenancy agreement will depend on the setup of the property. If the secondary dwelling is rented out as a self contained unit, where the tenant or resident has no access to the main house, the arrangement falls under a general tenancy agreement, or Form 18a.  

If the tenant or resident shares the kitchen or other facilities with occupants of the house, the tenancy may fall under a separate accommodation agreement, or a Form R18.

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

1) a rental where the granny flat contains more than one bedroom and each bedroom has been rented separately, with the residents sharing the facilities contained within the flat; or

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.

When establishing a rooming accommodation agreement, it may be useful to set out house rules to avoid any potential disputes.

What address should be on the tenancy agreement?

The address of the main property should be listed on the tenancy agreement unless local council has issued a separate address relating to only the secondary dwelling. The agreement should also clearly outline what building or part of the building is being rented.

The local council can clarify the primary address of the property if there are multiple street frontages.   

Should a mailbox be installed in the dwelling?

The property owner can choose to install a new mailbox, or they can come to an agreement with the tenant or resident about how a mail will be distributed.

This should be agreed before the tenancy agreement is signed. To avoid confusion, it can be a good idea to add special terms to the tenancy agreement setting out how the mail will be managed. If the property owner wants to add a mailbox for the secondary dwelling, they should talk to their local council first. Local councils are the recognised authority for allocation of approved numbering. 

Can tenants in the secondary dwelling be charged for water?

Water can only be charged to the tenant if the secondary dwelling is individually metered, water efficient, and the tenancy agreement states that that the tenant is paying for water consumption.

The property owner should ensure they pass water bills onto the tenant or resident in a timely manner. There may be cases where a secondary dwelling is individually metered and the tenancy agreement states that the tenant is paying for water, but the premise is not water efficient. In this circumstance, the property owner must pay for a reasonable amount of the water consumption, and the tenant may be required to pay for excess water.

For more information, read the RTA's water charging webpage.

Can tenants in the secondary dwelling be charged for other utilities? 

The property owner and the tenant should negotiate and come to an agreement around how gas and electricity will be paid. If the secondary dwelling is not individually metered, the tenancy agreement should outline how gas or electricity will be charged.

The agreement should state: what service the tenant or resident is being charged for, how the tenant or resident's share of the bill will be worked out, and how they should pay for the charges.

If there's no terms outlining these charges in the agreement, the property owner CANNOT charge the tenant for these services. For more info, please read the RTA's charging for utilities webpage.

Special Terms.

The agreement should also include any special terms outlining arrangements for: access to the dwelling, parking spaces, access for use of clothesline and rubbish bins, internet charges, and pool & garden maintenance.

These special terms should be as detailed as possible to avoid confusion or disputes between the parties. For example, the agreement could outline: who gets certain parts of the driveway for allocation to park their vehicle, or outline what areas of the garden each party is responsible for and who supplies and maintains the equipment. 

Thanks guys.

Now you know a little bit more about granny flats.

Again, there's a lot more out there on the internet. There's heaps of granny flat companies.

Talk to your local council, jump on the RTA website.

If this video has taught you something, please, please, please give it a like and a share.

Thanks guys, see you next week.  

Get in touch with us. Jump on our Instagram, our Facebook, our website.

George Souris. Empire Legal.

If you have any questions, you can email me: george@empirelegal.com.au. 

If this has added value, please share this blog / the YouTube video with a friend. 

Thanks for reading everybody. See you on the next one.

Ladies and gentlemen, please keep in mind that all advice is general in nature and does not constitute legal advice. This is authorised by George Sourris, Empire Legal, Gold Coast, Queensland, Australia.

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Note: all information is general in nature and as each matter is unique please contact our office for tailored advices: the above does not constitute legal advice.