Holiday stay in your granny flat or spare unit

Furnish a self-contained unit at your property and rent it to holidaymakers by the night.

Tidy furnished apartment bedroom ready for holidaymakers arriving for a short stay.
Startup costA$3k to A$15k
Monthly revenueA$1.5k to A$6k
Time needed5+ h/week
First incomeWeeks
  • A$3k-15k
  • Side hustle
  • From home

Estimates for a small start in Australia, not guarantees.

What it is

You turn a granny flat, studio or self-contained unit on your own property into a furnished short-stay rental. You handle listings, check-in, cleaning and guest messages.

Your first three steps

  1. Check with your local council and state rules on short-term rentals, and whether you need approval or registration
  2. Furnish and photograph the unit, then write a clear listing with house rules on one or two booking platforms
  3. Set a starting nightly rate by comparing similar places nearby and ask early guests for reviews
Who pays

Holidaymakers, couples on weekends away, visiting families and the occasional contract worker, mostly booking through online travel sites.

How it makes money

Nightly fee plus a cleaning fee. Income depends on location, season and how many nights you are booked.

Skills that help
  • Friendly, clear communication with guests
  • Reliable cleaning and turnover routine
  • Basic photography and listing writing
Watch out for
  • Council approval or state registration for short-term rentals, which differs by state and council area
  • Your home and contents insurance may not cover paying guests, so check for short-stay or public liability cover
  • Tax: income must be declared, and check ABN and GST obligations with an accountant
  • Strata or body corporate rules and neighbour noise complaints if you share a boundary
  • Quiet periods in the off-season, so don't rely on peak-season income

Deep research report · Australia

Everything you need to start: holiday stay in your granny flat or spare unit

Researched with live web search for Australia: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.

  • Startup costs with real prices
  • Licences, registration and rules
  • Pricing: what others charge
  • Break-even example
  • Finding your first customers
  • 30-day launch plan
  • Risks and how to reduce them
Ready in about 2 minutes · one-off payment, tax included

See a full sample report

Questions people ask

How much does it cost to set up a granny flat holiday rental?

Estimates suggest startup costs are typically around $3,000 to $15,000, depending on how much furnishing, linen and photography the unit needs, and what it already has. Insurance and registration costs may add to this.

How much can a holiday granny flat earn?

Monthly revenue is typically estimated at around $1,500 to $6,000, depending on your location, the season and how often it is booked. Off-season periods can be quiet, so avoid relying on peak-season income.

What rules apply to short-term holiday rentals?

Check council approval or state registration for short-term rentals, as these differ by state and council area. Also check whether your home and contents insurance covers paying guests, strata or body corporate rules, and your ABN, GST and tax obligations.

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