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Granny flats in Queensland: manufacturing cash flow with a second dwelling

Since 2022, a granny flat in Queensland can be rented to anyone. For the right property, that can mean a second income stream on the same block.

Kodi Wulff
Kodi WulffHead of Renovations & Value-Add · 22 September 2026 · 5 min read

Queensland changed its planning rules on 26 September 2022 so that secondary dwellings, often called granny flats, can be rented to anyone, not just family members of the people living in the main house. For investors with the right block, it opened up a way to manufacture cash flow rather than rely on capital growth alone.

What a second dwelling can do

In our Elanora case study, a three-bedroom home was already returning $850 a week. A modern two-bedroom, one-bathroom secondary dwelling now rents for $750 a week, taking combined income to $1,600. We manage both as one asset: one owner, one report, two leases on their own cycles.

What to check before you build

  • Your block. Size, slope, access and where services run all affect cost and feasibility.
  • Approvals. New secondary dwellings still need building approval, and your council may require development approval. If an existing granny flat was approved with occupancy conditions, you may need a change application before renting it out.
  • Building requirements. Renting a secondary dwelling separately can trigger extra requirements, such as fire separation and sound transmission standards.
  • The numbers. Compare the build cost against the expected rent, the extra outgoings and any effect on the main house’s rent.
  • Tax. Talk to your accountant about depreciation, land tax and any capital gains implications.

Design for tenants, not for show

A good secondary dwelling has its own entry, private outdoor space, separate parking where possible and a layout that works for a couple or a small household. Good acoustic separation keeps both sets of tenants happy, and happy tenants stay longer.

How we help

Through Equity Projects, our renovation business, we can scope and deliver the work. Rentwell then leases and manages both dwellings. If you think your property might suit a second dwelling, raise it in your annual Property Performance Review.

General information only. Requirements vary by council and property.

Sources

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