How to Set Rent & Utilities for a Granny Flat or Rooming Accommodation
A practical guide for landlords in Australia & New Zealand
Why Granny Flats & Rooming Accommodation Are Different
Setting rent for a granny flat or rooming accommodation is different from pricing a standard rental. Secondary dwellings come with unique quirks — shared utilities, shared spaces, privacy differences, and sometimes different legal rules. This guide helps you set a fair, competitive, and compliant rent.
Before you start thinking about rent though, work through Mint's Property preparation checklist to make sure it's compliant and ready to be rented.
Start With a Clear Rent-Setting Process
Step 1 — Research comparable rents
Look at similar properties in your suburb:
- Granny flats
- Studios
- Micro-apartments
- Rooming accommodation
- Student accommodation (if relevant)
Where to research:
- realestate.com.au
- Domain
- Flatmates.com.au (rooming accommodation)
- Gumtree Rooms for Rent
- Facebook Marketplace (local rooming trends)
- Airbnb (long-stay filter) for self-contained studios
- University accommodation boards (if near a campus)
Step 2 — Adjust for utilities
Utilities are one of the biggest pricing differences between secondary dwellings and standard rentals.
- Included utilities → higher rent
- Shared utilities (no separate meter) → usually included or charged as a flat contribution (more details below)
- Separate metering → treat like a normal tenancy
Step 3 — Adjust for privacy and amenities
Consider:
- Separate entrance
- Soundproofing
- Private vs shared bathroom
- Private vs shared kitchen
- Parking
- Air-conditioning
- Furnishings
- Outdoor space
Step 4 — Sense-check against demand
- Lots of enquiries → you may be underpriced
- Few enquiries → you may be overpriced
Utilities to Capture in the Agreement
Secondary dwellings often involve shared or bundled utilities. To avoid disputes, clearly state what is included and what is charged separately in your tenancy contract. Mint truly thinks of everything so it's best to use Mint to ensure these are captured in your rental agreement in the best way.
If a utility is separately metered then often you can charge the tenant for it (or they set up billing directly with the provider). There are exceptions when it comes to water though, so check out Mint's guide to 'What you can charge your tenant for'.
Utilities you should explicitly address:
- Electricity
- Water - find specific rules here
- Gas
- Internet / Wi-Fi
- Cleaning of shared areas (rooming accommodation)
- Gardening / outdoor maintenance
- Laundry
- Parking
How You Can Charge for Utilities
Charging for utilities can either be through a flat fee or proportion of the bill based on their estimated usage. To determine the proportion used for the tenant, you could use their portion of occupants in the home or floor area compared to the overall size of the dwelling. The rules differ depending on where the property is located and the type of utility.
If the utility is not separately metered
Below is the full breakdown of what you can charge in each jurisdiction.
Summary Table — Charging for Utilities (Not Separately Metered)
| Jurisdiction | Flat Fee | Proportional Share | Notes |
|---|---|---|---|
| QLD | ✔ Allowed | ✔ Allowed | Must be reasonable + agreed in writing. Consider specific water rules. |
| NSW | ✘ No | ✘ No | Must be included in rent |
| VIC | ✘ No | ✘ No | Must be included in rent |
| SA | ✔ Allowed | ✔ Allowed | Must be reasonable + agreed in writing. Consider specific water rules. |
| TAS | ✘ No | ✘ No | Must be included in rent |
| WA | ✔ Allowed | ✔ Allowed | Must be reasonable + agreed in writing. Consider specific water rules. |
| NT | ✔ Allowed | ✔ Allowed | Must be reasonable + agreed in writing. Consider specific water rules. |
| NZ | ✔ Allowed | ✔ Allowed | Must be reasonable + agreed in writing. Consider specific water rules. |
What Each Method Means
Flat Fee
A fixed weekly amount covering all utilities (common in rooming accommodation).
Example: $30/week all-inclusive
Usage-Based Contribution
A fair estimate of the tenant's consumption using sub-meters, smart plugs, or historical usage patterns. This is more accurate but requires more setup and monitoring.
Proportional Share
A split based on:
- Number of occupants
- Floor area
- Exclusive vs shared spaces
- Appliance usage
Common in granny flats without separate meters
💡 Utilities Calculator
Calculate fair utility charges based on your jurisdiction and property setup.
Legal Rules by Jurisdiction
Here's the clean breakdown of what you must consider when setting rent.
Rent Increase Timing Explanation for Rooming Accommodation
In rooming accommodation, rent increases are regulated to occur no more than once every 12 months. This 12-month period applies across all rooms and agreements managed by the same provider or landlord. This means that if you rent multiple rooms, the timing of rent increases is generally based on the last rent increase given for any of the rooms, not individually per room.
In other words, the landlord cannot increase rent for one room if another room's rent was increased less than 12 months ago. This ensures consistent and fair rent increase timing across all residents in the rooming accommodation.
For granny flats and other secondary dwellings, rent increase timing is typically based on the last increase for that specific tenancy agreement or dwelling. Each tenancy agreement runs its own 12-month clock for rent increases.
Granny Flats
| Jurisdiction | Bond Amount | Rent Increase Frequency | Utilities Charging Rules | Other Key Rules |
|---|---|---|---|---|
| QLD | Up to 4 weeks | Once every 12 months | Charge usage only if individually metered, water efficient, and stated in the agreement; otherwise include water in rent | Can be rented to anyone (since 2022 reforms) |
| NSW | Up to 4 weeks | Once every 12 months | If not separately metered → must be included in rent | Must be council-approved as a secondary dwelling |
| VIC | Up to 4 weeks | Once every 12 months | If not separately metered → must be included in rent | Must be an approved "dependent person's unit" unless built under new small-second-dwelling rules |
| SA | Up to 4 weeks (if rent < $800/week), otherwise 6 weeks | Once every 12 months | If not → may charge a reasonable contribution (flat fee or proportional share) | Must be approved as a secondary dwelling |
| TAS | Up to 4 weeks | Once every 12 months | If not separately metered → must be included in rent | |
| WA | Up to 4 weeks | Once every 6 months | If not → may charge a reasonable contribution (flat fee or proportional share) | |
| NT | Up to 4 weeks | Once every 6 months | If not → may charge a reasonable contribution (flat fee or proportional share) | |
| NZ | Up to 4 weeks | Once every 12 months | If not → may charge a reasonable contribution (flat fee or proportional share) | Must be approved secondary dwelling |
Rooming Accommodation
| Jurisdiction | Bond Amount | Rent Increase Frequency | Utilities Charging Rules | Other Key Rules |
|---|---|---|---|---|
| QLD | Up to 4 weeks | Once every 12 months (across all rooms managed by the same landlord) | Usually included unless separately metered | Covered by Rooming Accommodation provisions; must meet fire safety and minimum housing standards |
| NSW | Up to 2 weeks | Once every 12 months | Usually included | May require registration if >5 residents; must comply with Boarding Houses Act 2012 and fire safety rules |
| VIC | Up to 14 days' rent | Once every 12 months | Included | Must be registered with council; strict minimum standards and fire safety rules |
| SA | Treated as standard tenancy unless meeting "rooming house" definitions | Treated as standard tenancy | Usually included | No separate legislative category for rooming accommodation |
| TAS | Treated as standard tenancy unless meeting boarding premises rules | Treated as standard tenancy | Usually included | Boarding premises covered under Residential Tenancy Act |
| WA | Treated as standard tenancy unless lodging arrangement | Treated as standard tenancy | Usually included | Lodging arrangements have some variations from standard tenancy |
| NT | No separate category | No separate category | Usually included | Treated as standard residential tenancy |
| NZ | Covered under Residential Tenancies Act 1986; varies by arrangement | Once every 12 months | Can be charged if reasonable and agreed in writing | Must meet health and safety standards; Healthy Homes Standards apply |
Mint Takeaway
Setting rent for a granny flat or rooming accommodation is all about balancing:
- Market comparisons
- Utilities
- Privacy and amenities
- Compliance rules
- Your operating costs
A well-priced secondary dwelling attracts stable tenants and maximises your return.
Mint helps you compare market rents, understand your legal obligations, and set a rent that's fair, competitive, and compliant.