Can You Rent Out a Granny Flat in Victoria? Rules & Rental Income Potential

The question of whether you can rent out a granny flat in Victoria is one of the most common — and most misunderstood — topics in secondary dwelling construction.

The Current Legal Position

In Victoria, most granny flats are approved as Dependent Person's Units (DPUs), which means they're intended for someone who depends on a resident of the main house. Technically, renting a DPU to a stranger may not comply with the original planning approval.

The Changing Landscape

The Victorian Government has been moving toward allowing secondary dwellings to be used more flexibly. Keep an eye on legislative changes that may open up rental opportunities more broadly.

Rental Income Potential

If you can legally rent your granny flat, expect $250–$400 per week in Melbourne metro, or $200–$300 in regional areas. That's $13,000–$21,000 per year — a meaningful return on your investment.