Can I rent out my Granny Flat on the Gold Coast?

In short, yes you can.

The Queensland State Government announced in late September 2022 that they were changing the definition of a Dwelling House to no longer require a Secondary Dwelling (a granny flat is defined as a Secondary Dwelling within Queensland) and the primary dwelling to operate as a single household. This previous definition meant that the Secondary Dwelling was essentially an extension of the primary residence and was commonly used by either young family members (teenagers or young adults still living at home but wanting some space) or elderly family members. Although many Secondary Dwellings were rented out to third parties within the Gold Coast, this was technically illegal. Align’s team dealt with many show cause notices issued by City of Gold Coast residents who were renting their Secondary Dwellings. Often, they were not aware of the restrictions.

The changes to the rules around renting out Secondary Dwellings were actioned following a continued tightening of the rental market in Queensland and, in particular, the Gold Coast. It is important to note that the changes are only proposed to be a trial for 3 years (until September 2026) before the Queensland Government will undertake a review. It is Align Planning’s opinion that it is very unlikely that the Queensland Government will revert back to the old definition and remove the opportunity to rent your Secondary Dwelling out to a third party. However, it is important to note that it is possible.

The changes to the definition of Secondary Dwelling have created opportunities for existing homeowners within the Gold Coast. Due to the tight rental market, homeowners and investors are able to achieve a strong return on Secondary Dwellings. The Secondary Dwellings also benefit those renters who may want to have their own space but cannot afford a free-standing home. The majority of properties within the Gold Coast can be improved by a Secondary Dwelling. A development approval will still be required in the majority of situations.

Some of the design restrictions for Secondary Dwellings are discussed within the “Our Services” tab of the Align website (see link – https://alignplanning.com.au/services/secondary-dwellings-granny-flat/). It is important for your designer to take into consideration these design restrictions, with City of Gold Coast still closely examining each Secondary Dwellings to ensure they are still subordinate to the primary Dwelling.

What if you already have a Secondary Dwelling at your property? Well, as long as it has a valid development/building approval, you will now be able to rent it out. Align has found that many Secondary Dwelling approvals granted in the last 5 years have a condition on them that essentially states you cannot rent the dwelling out to a third party. You will need to complete a change application to have this condition removed, should it be present in your development approval. Align Planning can review any existing decision notices at no charge and advise if a change application is required.

If you are considering a Secondary Dwelling at your property, contact Align Planning today, and we would be happy to help.

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Can I rent out my Granny Flat on the Gold Coast?