Do Granny Flats Add Property Value?

Granny flats have excellent potential to increase the value of your property. By giving you more living space, rooms and amenities, you create a more appealing property for buyers. The exact amount is going to depend on the specific details of your granny flat. But once it’s built, renting it out is an excellent option for short or long-term income. You can tailor your granny flat to be perfect for potential renters. Or you can repurpose your granny flat as an office or exercise space. The possibilities truly are endless with such a versatile and useful dwelling type. They’re an especially useful and viable option in Australia’s current property market.


A granny flat adds value to your home by increasing the amount of livable space on your property. Often, people have additional land on their property that isn’t being used as a house such as a backyard. This doesn’t contribute much to property value. However, building a granny flat in your backyard does. A granny flat gives you a greater number of rooms, bathrooms and amenities across the property as a whole. Granny flats don’t exist on their own and are counted as being part of the lot your house is on. While increased resale value is one primary benefit of adding a granny flat, it also provides other benefits. Granny flats make excellent rental properties while also being flexible enough for a number of other uses.

The exact amount a granny flat will increase a property’s value depends on a range of factors. Size is important because it directly corresponds to living space. And living space corresponds to appealing features such as more bedrooms. A larger granny flat will likely lead to a greater increase in property value. Another thing to consider is the quality of the granny flat. It may be more expensive to opt for high-quality building materials, but it will translate to a more durable and long-lasting granny flat. This creates greater property value in the long-term. Finally, there are the features and amenities. A granny flat with a better array of fixing across the kitchen, living room and bedrooms make it a more appealing part of the property. This is very attractive to prospective buyers with an eye for aesthetics. Explore some of the beautifully designed granny flat builds and renovations in our photo gallery.

Interior of a granny flat built by Granny Flats WA in Lesmurdie.


Renting out your granny flat is a fairly straightforward process. Once it has been built and aligns adequately with your local council’s occupancy standards, you need to make a rental listing for it. This will often be taken care of by your property manager for a fee, but you can also opt to do it on your own. The process typically involves taking photos, listing your granny flat’s features and taking care of the relevant documentation. For a more detailed breakdown, check out our blog about renting out your granny flat.


How much rent you can earn from your granny flat depends on a few things. Firstly, the size of your granny flat. If your granny flat is larger that will often mean it has more bedrooms. This means a greater number of potential renters. Additionally, you have to factor in location. If your granny flat is located in a more desirable area, that will allow you to charge a higher rental rate. It’s also important to consider the features of your granny flat. If it has more modern fittings, an outdoor area or eco-friendly design, renters may be prepared to pay more. But even when renting, you have to consider the length of occupancy. In the short-term, you may earn more rental income by renting your granny flat as an Airbnb. But you don’t get as much financial stability as a long-term rental arrangement. Regardless of the exact amount, the passive income from a granny flat is incredibly valuable. It helps you to pay off the building costs with minimal time and effort on your part. You can start getting a return on your investment as soon as it has been fully built.

Exterior of wooden deck granny flat built by Granny Flats WA in Lesmurdie.


There was a time when the view of a humble granny flat was limited and confined. They were commonly seen as places for elderly parents to reside – hence the name ‘granny’ flats. While granny flats are an excellent option for housing elderly family members, they can be so much more. People have begun to realise the range of different benefits that a granny flat can bring. The rise of the ‘tiny house movement’ is a testament to this.

Granny flats have the potential to provide excellent utility in different ways, aside from renting. They are easily repurposed to suit your preferences and passions. Granny flats can make excellent office pods for people who work from home or want a quiet space for personal projects. They even work well as home gyms or dedicated exercise rooms on your property.

Part of the reason that granny flats have increased in popularity is due to the housing crisis in Australia. Many large scale-building projects are stuck in limbo and the wait times are exceedingly long. Combine this with the influx of new residents and you get a shortage of available properties. This has made it harder for both potential homeowners and people looking to rent. By building a granny flat, you not only have the chance to gain rental income, you are also helping people find somewhere to live. If you’re wondering where to start, check out our blog about the first steps to building a granny flat. Granny flats WA is dedicated to helping you through every step of the way. We want to ensure all of our customers can make the granny flats of their dreams a reality. If you’re after more information or just keen for a chat, contact our friendly team who will be happy to help you.