What Is a Granny Flat?

Designed for one or two persons, a granny flat is a self-contained living area usually located on the grounds of a single-family home. A granny flat can be detached, or it can be attached to the other dwelling. This type of accessory dwelling unit is commonly called a granny flat because families can accommodate aging parents or other relatives in the space.

Many granny flats fall into the tiny house category, and the surge in interest in tiny house living has been a boon to older parents interested in this type of housing.

Nannies or young adult family members can also live in granny flats or tiny homes. They are also used as rental units but zoning laws and deed restrictions sometimes ban renting.

Multigenerational housing and granny flats are popular with realtors and builders because of their increased marketability, making them another good selling point for a property.

Amenities in a Granny Flat

Some granny flats are miniature versions of full-sized housing units with complete kitchens. In others, kitchen facilities are limited, perhaps to a mini-fridge and microwave, which involve fewer safety issues than full kitchens.

The Granny Pod 

Newer high-tech granny pods offer remote access monitoring capabilities. Granny pods may include other devices and amenities such as a timed medication dispenser and a toilet that checks the resident's temperature along with a simple urinalysis.

Difficulty of Adding a Granny Flat

The granny flat industry faces barriers, such as municipal statutes, zoning laws, building restrictions, neighborhood covenants, and other regulations that restrict its growth. In many cases, homeowners ignore or circumvent the rules, which is relatively easy when converting a garage or other existing structure but less so when building a new granny flat.

New construction for an ADU is also expensive, it's challenging to secure financing, connect utilities, and provide off-street parking. The growth of the prefabricated or modular building industry has made it easier for some homeowners to add a granny flat, but this type of structure may be prohibited in some localities.

Advantages of Adding a Granny Flat

Besides providing living space, there are other advantages to having a granny flat. There is greater security with another tenant on the property. In addition, transportation, amenities, childcare, and property maintenance costs and tasks can be shared.