When homeowners first hear about the Buy My Backyard model, the most common initial question is: "What's the difference between this and just building a granny flat and renting it out myself?"
It's a fair question. Both options put a secondary dwelling on your land. But who pays for it, who gets paid, who carries the risk and who does the work are fundamentally different.
If you build a granny flat and rent it out yourself, the dwelling is yours and so is the tenancy, which is governed by the Residential Tenancies Act in your state. Key characteristics:
As a landlord renting out a granny flat, you can expect:
Granny flats commonly rent in most metro markets, and being a landlord can work well for people who have the capital, want the dwelling as their own asset and are comfortable with the responsibilities. It's real work and real risk, though, not a hands-off arrangement.
Under our model, you grant Buy My Backyard a 99-year lease over an agreed portion of your backyard. Key characteristics:
Under a 99-year land lease with Buy My Backyard:
| Build and Rent Yourself | Lease the Land to Buy My Backyard | |
|---|---|---|
| Who funds the build | You | Buy My Backyard |
| What you receive | Rent over time, after costs | One lump sum, up front |
| Who owns the dwelling | You | Buy My Backyard (for the lease term) |
| Who keeps the rent | You | Buy My Backyard |
| Vacancy risk | Yours | Ours |
| Maintenance | Yours | Ours |
| Active management | Required (or paid manager) | None for you |
| Registered on title | No | Yes |
| Your title | Unchanged | Unchanged |
| On property sale | Dwelling and tenancy go with the sale | Lease stays with the land; your lump sum is already yours |
| Tax implications | Rent is assessable; deductions may apply | Seek tax advice on the lump sum |
It depends on what you want.
Building and renting yourself may suit you if you have the capital or borrowing capacity, want to own the dwelling outright, want to receive the rent and are comfortable being a landlord over the long term.
Leasing the land to Buy My Backyard may suit you if you'd rather have cash now, don't want to fund a build or take on debt, and don't want tenants, maintenance or vacancy risk.
If you want maximum flexibility — the ability to use the space yourself, end a tenancy or redevelop freely — building and renting yourself gives you more control.
A 99-year lease is, by design, a long-term commitment over the leased portion. Ending it early generally requires the agreement of both parties or a specific breach provision. That's the trade-off for receiving a lump sum up front with no cost and no landlord responsibilities.
Yes — and we actively encourage it. A 99-year land lease is a significant legal document. Before executing the lease, you should have it reviewed by an independent solicitor who can advise on:
Buy My Backyard will provide you with a draft lease well in advance of execution and will pause the process to allow adequate time for legal review.
If you're weighing up whether to build and rent yourself or lease your land, the free property assessment is a useful first step. We'll assess whether your property qualifies for the Buy My Backyard programme and, if it does, tell you what we'll pay for the lease — so you can compare your options with real information.
No cost. No commitment. 48-hour response.
This article provides general information only and does not constitute legal, tax or financial advice. Lease arrangements vary by state legislation and individual circumstances. Always seek independent legal advice before entering a long-term lease.
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