NSW Granny Flats in NSW - Rentings & Permits

Discussion in 'Property Management' started by costanza, 10th Apr, 2021.

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  1. costanza

    costanza Well-Known Member

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    Hi

    Looking at a house in Sydney with a granny flat. Agent has said that in the past the granny flat and house were rented out separately.

    Had a few questions:
    1. What / who should I ask for to ensure that the granny flat has the approvals / permits? Council? Or the vendor?
    2. Shouldn't the permits be in the contract of sale? The contract mentioned a granny flat as a inclusion, but no permits or anything attached. Although the sewer diagram did have both the house and the granny flat.
    3. If i turn it into an IP down the track, is it legal to rent out the granny flat and house separately to two different parties? I thought in this case you would need to be approved for dual occupancy?
    4. Best way to find out if the granny flat has a separate metered connection?
    5. Anything else i should look out for? Eg if the granny flat has its own internet connection?

    Land is zoned E4

    Thanks in advance
     
    Last edited: 10th Apr, 2021
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    1. Your solicitor should requisition this info
    2. No, it's not a requirement in the contract. Water diagram is specifically required.
    3. No restrictions on leasing a gf separately in NSW
    4. Look for a 2nd set of water & electrical meters
    5. Check NBNco.com.au GF usually don't have their own address so no separate NBN point.
     
  3. costanza

    costanza Well-Known Member

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    Thanks Scott. Regarding this point, a friend of mine bought a house with a granny flat in Campbelltown a few years ago. They rented out the house/granny to two different parties. The granny flat tenant tried to request the own bin one day from the council.

    Then my friend got a notice from the council that the granny flat can't be rented out separately, unless it has the right permits ( such as when it was being built someone had to check if you had water proofing - to make sure it is liveable). To do all these inspections, they were basically suggested to rip out the kitchen and bathroom, and get the permits to make the secondary dwelling able to be rented out separately.

    So I wanted to look into whether this is also not the same case here...
     
    Last edited: 10th Apr, 2021
  4. Hayley Cannon

    Hayley Cannon Well-Known Member

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    I would assume in this case the granny flat was not approved. In NSW if the granny flat was approved by council (solicitor/conveyancer should find out for you) then you can certainly rent them separately
     
  5. costanza

    costanza Well-Known Member

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    My friend tells me that the granny flat building was approved. So the size/distances etc of the granny flat all comply. It just wasn't approved for occupancy. I am trying to figure out how this happens??? Solicitor mentioned that the building was legal - but surely should have checked if its approved as a secondary dwelling? Or is there a separate approval if you want to rent it, rather than use it yourself?
     
    Last edited: 10th Apr, 2021
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    As per @Hayley Cannon, it wasn't approved as a dwelling.

    You should be asking your solicitor to have the vendor provide an occupancy certificate for the gf (requisition).
     
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  7. skater

    skater Well-Known Member

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    And get their own bins. If Council is giving your friend grief, then their GF was either not approved, or maybe approved as something else.
     
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  8. Marg4000

    Marg4000 Well-Known Member

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    Depends on the approval.

    A shed can have council approval. But if you convert it to a granny flat, the granny flat usage is not automatically approved - separate approval would be needed.
     
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  9. skater

    skater Well-Known Member

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    Campbelltown is not unlike Western Sydney suburbs, where there are a lot of 'teenage retreats' which is just really code for unapproved granny flat. Some of them are very well built and others are a nightmare. It is possible that your friend has one of these.
     
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  10. JoannaK

    JoannaK Well-Known Member

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    1. The council will have this information, or you could requisition this from the vendor

    2. No

    3. Yes, of course you can rent it to separate parties, providing that the granny flat is actually approved as a granny flat and has an occupation certificate

    4. Look for the meters. Typically a granny flat will have it's own gas and electricity meters, but usually not have it's own water meter.
     
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  11. costanza

    costanza Well-Known Member

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    I asked the agent if the vendors have approvals/ certificates for the granny flat. She said no! She said the house was bought with the granny flat and the vendors have no documents showing permits or anything...
     
  12. skater

    skater Well-Known Member

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    So speak to Council.
     

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