How to Make Your Granny Flat Stand Out in the Rental Market

As we enter 2026, Australia’s rental market has become more competitive and fast-paced than ever before. While demand for well-designed granny flats remains strong, tenants are no longer just looking for “extra space in the backyard.” They want comfort, privacy, functionality, and a place that genuinely feels like home.

So, if you’re planning to rent out your granny flat or already have one on the market, the question is no longer will it rent, but how well will it perform. Remember, the difference between a vacant listing and a steady stream of quality applications often comes down to the details.

Here is how to make your granny flat stand out in today’s rental market and attract the right tenants for the long term.

Understand What Renters Actually Want in a Granny Flat

Before making upgrades or styling decisions, it helps to understand who typically rents granny flats and what they value most.

Across Australia, granny flats attract a wide range of tenants. Young professionals looking for affordable independence, downsizers wanting low-maintenance living, students, couples without children, and even essential workers seeking quiet, self-contained accommodation.

Despite their different circumstances, most renters are looking for the same core things.

They want privacy and a sense of separation from the main house. They want natural light and airflow. They want storage, modern finishes, and a layout that does not feel cramped. And most importantly, they want to feel like they are renting a proper home, not an afterthought.

Designing and presenting your granny flat with these expectations in mind immediately sets you apart.

If you’re looking for options when it comes to a builder, Superior Granny Flats is the way to go. We proudly serve many areas with top-quality top-quality granny flats in Dandenong, Windsor, Hoppers Crossing, and Laverton.

Prioritise Smart, Liveable Design Over Square Metres

One of the biggest mistakes landlords make is assuming that size is the most important factor. In reality, how a space functions matters far more than how big it is.

A well-designed 60m² granny flat can feel more spacious and appealing than a larger one with poor layout choices. Open-plan living areas, defined zones, and clever storage make a noticeable difference to how the space feels day to day.

Think about how a tenant will move through the home. Is there room for a dining table without blocking walkways? Can the bedroom fit a queen bed and side tables comfortably? Is the bathroom layout practical, with enough space around the shower and vanity?

Design that feels intuitive and comfortable encourages tenants to imagine themselves living there, which is exactly what you want during inspections.

If you are still in the planning stage, it is worth exploring why 60m² designs continue to perform so well for investors and renters alike. This is explored further in Why 60m² Granny Flats Are Ideal for Investment, which looks at how smart design delivers strong rental outcomes.

Make Privacy a Clear Selling Point

Privacy is one of the first questions potential tenants ask about granny flats, even if they do not say it out loud.

They want to know whether they will be overlooked by the main house, whether windows face each other, and whether outdoor areas feel genuinely separate. If privacy feels compromised, many renters will move on quickly, regardless of how nice the interior looks.

You can improve privacy in several effective ways without major construction.

Thoughtful window placement and screening helps reduce direct sightlines. Fencing, landscaping, and separate access paths reinforce independence. Even small details like private letterboxes and individual bins contribute to the feeling of a self-contained home.

When advertising the property, do not assume renters will notice these features on their own. Call them out clearly. Words like “private entrance,” “separate yard,” and “fully self-contained” matter more than you might expect.

If you’re searching for the best granny flats/ small second dwelling to move into, Superior Granny Flats is here to help. As a Victorian-based building company, we have been a leader in the industry since 1990. We specialise in building high-quality prefabricated granny flats, sleepouts, relocatable homes, and cabins across Victoria and Queensland.

Invest in Finishes That Feel Modern and Durable

Renters notice finishes immediately. Old laminate benches, mismatched fixtures, or tired cabinetry can date a space instantly, even if everything is technically functional.

That does not mean you need luxury finishes, but it does mean choosing materials that look contemporary, feel solid, and will hold up well over time.

Neutral colour palettes work best for rentals, particularly whites, soft greys, and warm timber tones. These colours make spaces feel brighter and allow tenants to personalise with their own furniture.

Durable flooring such as quality vinyl planks or tiles is easier to maintain and more appealing than carpet in high-traffic areas. In kitchens and bathrooms, clean lines, modern tapware, and adequate storage go a long way in creating a polished look.

These choices not only attract tenants but also reduce maintenance and replacement costs over the life of the rental.

Storage Is a Major Differentiator

One of the most common concerns renters have with granny flats is storage. Where will they keep cleaning supplies, suitcases, sports gear, or work equipment?

A lack of storage can be a deal-breaker, even for tenants who love everything else about the property.

Built-in wardrobes, linen cupboards, overhead kitchen cabinetry, and practical laundry storage all add significant value. External storage sheds can also be appealing if done properly and securely.

When showing the property, open cupboards and wardrobes so tenants can see the storage available. It helps them picture how their life will fit into the space.

Offer Energy Efficiency and Comfort All Year Round

Energy efficiency has shifted from a “nice to have” to an expectation for many renters, especially with rising energy costs across Australia.

Good insulation, double-glazed windows where possible, and energy-efficient appliances all contribute to a more comfortable home and lower running costs.

Heating and cooling is particularly important. A split system air conditioner that can handle both summer heat and winter cold is often considered essential, not optional.

Other small touches like ceiling fans, block-out blinds, and cross-ventilation can significantly improve comfort and make your listing more appealing than similar properties nearby.

If your granny flat is comfortable year round, tenants are more likely to stay longer, reducing vacancy and turnover.

Create an Outdoor Area That Feels Intentional

Outdoor space is one of the quiet advantages granny flats can offer, but only if it is done properly.

A small courtyard, deck, or paved area with enough room for a table and chairs instantly expands the living space. Even modest outdoor areas feel valuable when they are private, usable, and easy to maintain.

Tenants are not necessarily looking for large lawns. They are looking for somewhere to sit, relax, or entertain occasionally without feeling overlooked.

Low-maintenance landscaping, good drainage, and clear boundaries make outdoor areas more appealing and reduce ongoing upkeep for you as the owner.

Present the Property Like a Home, Not Just a Rental

First impressions matter, especially online where most renters decide whether to inspect based on photos alone.

Professional photography is one of the simplest ways to stand out. Well-lit images that show the layout, proportions, and key features help your listing feel trustworthy and attractive.

Before photography and inspections, make sure the granny flat is spotless. Small styling touches like neutral furnishings, soft lighting, and minimal decor can help renters emotionally connect with the space.

Even if the property will be leased unfurnished, light staging can make a big difference to how it is perceived.

Price It Realistically for the Market

Overpricing is one of the fastest ways to lose momentum in the rental market. While it is tempting to push for the highest possible return, a slightly lower rent that attracts strong demand often results in better long-term outcomes.

Research comparable listings in your area and be honest about how your granny flat stacks up. Features like privacy, parking, outdoor space, and modern finishes justify stronger pricing, but only if they are clearly present.

If you are unsure how granny flats compare with other secondary dwelling options from an investment perspective, Granny Flats or Duplexes: Which Offers Better Rental Returns provides useful context around rental performance and demand.

Think Long Term, Not Just About Getting It Rented

The goal is not just to secure a tenant quickly, but to attract the right tenant who will look after the property and stay longer.

Granny flats that are comfortable, well-designed, and thoughtfully finished tend to attract renters who value their living space. These tenants are more likely to treat the property with respect and renew their lease.

Every decision you make during design, build, and presentation has a compounding effect on your rental outcome over time.

Final Thoughts and Next Steps

Standing out in the rental market is rarely about one big feature. It is about getting the fundamentals right and paying attention to the details that renters care about most.

A granny flat that feels private, functional, comfortable, and well-considered will always outperform one that feels rushed or compromised. With the right design choices and presentation, your granny flat can deliver strong rental returns while remaining low-stress to manage.

If you are considering building a granny flat or upgrading an existing one to improve rental performance, the team at Superior Granny Flats can help you design a solution that works for both you and your future tenants.

Get in touch today to discuss how to create a granny flat that stands out for all the right reasons and performs in the rental market for years to come.