Small standalone dwellings, commonly known as ‘granny flats,' have been a hot topic lately. The government is exploring ways to make it easier for homeowners to build these additional living spaces without needing building or resource consent. Between June and August last year, the Ministry of Business, Innovation & Employment (MBIE) and the Ministry for the Environment (MfE) conducted a public consultation to simplify the approval process for granny flats. The response was significant, with nearly 2,000 submissions, mainly from homeowners and building industry professionals.
Most submissions supported the idea of easing the construction of granny flats. However, there was a strong push to ensure changes also address concerns like reducing poor construction risks, improving consumer protections, assigning liability, and mitigating environmental risks, including those from natural hazards.
Granny Flats vs. Sleepouts: What’s the Difference?
The terms ‘granny flat' and ‘sleepout' are often used interchangeably, but they refer to different structures. Here’s how they compare:
Granny Flat: A small, self-contained, detached dwelling with its own kitchen, bathroom, and laundry facilities. Also known as a secondary or ancillary dwelling, minor unit, or family flat, it provides independent living space separate from the main house.
Sleepout: A detached building primarily for sleeping, without its own kitchen, bathroom, or laundry. Sleepouts rely on facilities within the main house, meaning the occupant is typically part of the household living in the main dwelling.
Do Granny Flats Fall Under the Residential Tenancies Act (RTA)?
Yes, granny flats are covered by the Residential Tenancies Act (RTA) in New Zealand, meaning landlords renting them out must adhere to the same legal responsibilities as any other rental property. A common misconception among landlords is that granny flats operate under different rules, but failing to comply with tenancy laws can lead to significant legal and financial consequences.
What Should Landlords Know About the Residential Tenancies Act?
The Residential Tenancies Act 1986 (RTA) establishes the legal framework governing rental agreements, ensuring both landlords and tenants understand their rights and responsibilities. Key points to remember include:
– The RTA applies to all rental properties, including granny flats—whether lawful or unlawful dwellings.
– Landlords cannot contract out of the RTA. Any agreement attempting to bypass these regulations is invalid.
– If a landlord fails to comply, tenants can file a complaint with the Tenancy Tribunal, leading to potential fines, rent refunds, or mandatory repairs.
Recent Tenancy Tribunal Case: What Happened?
A recent Tenancy Tribunal case highlights how misunderstandings about the RTA can be costly for landlords. In this case, a landlord was ordered to pay $1,320 in damages after unlawfully evicting a tenant from a granny flat with just two days’ notice. The landlord claimed the eviction was justified due to an alleged poisoning incident involving her dogs. However, the Tribunal ruled that the eviction was unlawful due to insufficient notice, and the landlord's claims for damages and medical expenses were dismissed due to lack of evidence.
This case is not unique. Another landlord was ordered to pay over $3,000 in compensation for breaching tenancy laws, including a 17.5% rent refund due to unlawful termination and failure to comply with Healthy Homes standards.
Can You Build a Granny Flat Without Consent?
Under the current Building Act, single-story detached buildings up to 30m² can be built without a building consent under certain conditions. However, this exemption mainly applies to sleepouts, sheds, and similar structures—not self-contained granny flats.
Currently, if you want to build a granny flat on your property, you need to obtain a building consent, and in some cases, additional permits. The government has proposed changes that would allow homeowners to build a granny flat of up to 60m² without a building consent, provided they follow specific conditions, such as using lightweight materials and ensuring qualified professionals carry out the work.
What’s Next?
At this stage, the proposal to ease building consent requirements for granny flats has not yet become law. If you’re considering building a granny flat, you still need to go through the proper consent process until any legal changes take effect. For a hassle-free build from start to finish, contact Retro Construction—we handle all the regulatory requirements for you!
We’ll also continue to monitor updates on the new regulations and share any changes as they arise.
Stay tuned!
