What is a tiny house?
A tiny house is a small, self‑contained dwelling around 20–40 square metres in internal area. They are generally built either on a permanent foundation or a moveable trailer.
Permanent foundations (non‑moveable)
- Fixed on the land so that it cannot be towed
- Not designed or built on a vehicle chassis
- Has removed the wheels, the drawbar and/or the underside frame
- Is supported on permanent stumps or slab
- Used privately by residents and/or for commercial accommodation.
Trailers (moveable), commonly referred to as a tiny house on wheels
- Positioned on a parcel of land, on wheels and moveable
- Constructed on a vehicle chassis
- Easily moveable by towing behind a standard vehicle
- Can be independent of existing larger dwelling or used privately in association with main dwelling on the land.
Tiny houses usually include basic amenities such as a living/sleeping space, kitchen and a bathroom. Regulation on tiny houses is based on how and where they are used, rather than size alone.
If I have a tiny house on wheels, would it be considered a caravan?
It can be challenging for tiny houses or moveable dwellings to comply with Building Code requirements. Many are designed and engineered to caravan standards only and often struggle to meet mandatory provisions such as the 7‑star energy efficiency rating, minimum head height, access requirements and general amenity standards.
We strongly recommended that you confirm any applicable planning and building requirements with Council’s Planning and Building Teams before starting your project. Requirements may vary depending on the specific property.
How are tiny houses regulated in Victoria?
In Victoria, tiny houses are not exempt from planning or building controls regardless of whether they are small or moveable. Approval requirements depend on:
- whether the dwelling is permanent or moveable
- length of occupation
- location of the site
- compliance with the Building Code of Australia.
Yarra Ranges Council administers these requirements through planning schemes, local laws and building regulations.
Any dwelling or type of accommodation, including either a moveable or non-moveable tiny house, requires a building permit. There is no allowance for ’weekenders’ or ’temporary accommodation’ under the Building Code. All applications need to meet the requirements of that code.
It is very difficult to get a tiny house or moveable dwelling to comply with Building Code requirements. Most are engineered to a caravan standard only. They have difficulty meeting other standards such as 7-star energy rating, head height or access and, amenity standards.
Contact Council early when considering a tiny house
Non-moveable tiny houses are regulated as dwellings in Victoria. There is no alternative pathway around the planning system. Early discussion with council planning and building staff is strongly recommended to confirm whether a proposal is feasible.
Any dwelling or type of accommodation, regardless whether it is used as a ‘weekender’ or ‘temporary accommodation’, requires a building permit under the Building Code. All applications must meet the requirements of that code.
Property owners should contact the Planning Team if you are considering a tiny house in Yarra Ranges before starting any design, purchase or installation
You can contact Council’s Planning Team on 1300 368 333.
Approval can be complex in the Yarra Ranges. Many properties are affected by planning overlays such as bushfire, flooding, erosion and landslip, environmental significance, significant landscape and heritage controls.
Frequently Asked Questions
What are the building permit requirements for tiny houses?
Where a tiny house is located on an allotment with an existing single dwelling, it may be considered a small second dwelling, provided it:
What are the building permit requirements for tiny houses?
Building permit requirements
All building work requires a building permit, unless an exemption applies under the Building Regulations. The exemptions that may apply to tiny houses are limited to:
- Temporary emergency accommodation on properties affected by bushfire or flooding, subject to specific conditions and limited to a maximum of 3 years under regulation 166G
- Moveable units constructed and used by a registered community service provider for temporary accommodation on a not-for-profit basis, subject to conditions under Schedule 3, item 18.
Unless one of these exemptions applies, a building permit is required to build or locate a tiny house that is not a vehicle and is not located within a registered caravan park.
If you are considering purchasing or installing a tiny house, but do not want to consult with council, we recommend asking your provider:
- Can this get a building permit as a Class 1ai dwelling?
- Can you provide me with Domestic Builders Warranty insurance?
- Are you a registered Building Practitioner in Victoria?
Does the Residential Tenancies Act 1997 exemption apply to tiny houses?
The Residential Tenancies Act 1997 exemption does not apply. The exemption under s517 of the Residential Tenancies Act (RTA) applies only to moveable dwellings located within a registered caravan park. This means the Building Act and Building Regulations apply to all moveable dwellings, other than currently registered vehicles, that are located on properties outside a registered caravan park.
As a result, the design, construction and installation of a tiny house or moveable dwelling on private property must comply with the National Construction Codes – Building Code of Australia (BCA) and the relevant plumbing standards inclusive of the Plumbing Code of Australia (PCA).
What isn’t a tiny house?
A tiny house is not an outbuilding. Outbuildings include a carport, garage, pergola, verandah, deck, shed or similar structure not intended for residential use.
If the tiny house is not self-contained (ie it does not contain a kitchen sink and food preparation facilities), and is not a caravan, then it is considered an outbuilding. Under this circumstance, planning permits may be required under the particular zone or overlay for building and works to construct an outbuilding. An outbuilding can only be built on land with an existing dwelling.
A building permit will always be required to use an outbuilding for residential use. It is advised you speak to a private building surveyor about the requirements.
Caravan vs tiny house
A caravan is defined in the Neighbourhood Amenity Local Law 2020 as:
- Caravan means any caravan requiring to be registered, motor home, bus and any other object or structure having the general characteristics of a caravan, notwithstanding that any of the wheels or axles thereof have been removed or that it is resting directly on the ground or is placed on blocks or other supports, and which is designed to be used for the temporary accommodation of people;
Pursuant to the Neighbourhood Amenity Local Law 2020:
- An occupier of land must not live in a caravan or allow or suffer any other person to live in a caravan, on the land in a manner that causes a nuisance.
The key aspect of the use of caravans is that they are used to temporarily accommodate people, as per the definition in the Local Law. ‘Temporary’ under the Local Law means a caravan sited on private land for days or weeks and not for a number of months. If a caravan is located on land for several months, this would be beyond the Local Law and the planning scheme for use of land for accommodation would apply.
Council is planning to review the current Local Law, particularly with respect to the use of caravans and tiny houses.
Some Councils’ Local Laws have more guidance for residents on the use of caravans and tiny houses.
Council Local Laws require significant and deliberate consultation before they are made. Residents will be given opportunity to help shape a new Local Law.
Can I put a tiny house on my property?
While some planning exemptions exist for small second dwellings, these do not automatically apply to tiny houses. Unfortunately many online resources fail to disclose the need for appropriate council permissions.
This is particularly relevant for Yarra Ranges. There are many properties with planning overlays including bushfire management, environmental significance, erosion management and land subject to inundation overlays.
If you are considering a tiny house in Yarra Ranges, please contact Council’s Planning Team on 1300 368 333.
What questions should I ask when considering a tiny house?
- Is it moveable?
- How is it constructed?
- What Zone is my property?
- What Planning Overlays are on the land?
- How will it be used?
- How many days will it be used each year?
What are the requirements for a granny flat (dependent person's unit)?
A dependent person’s unit is a moveable building on the same lot as an existing dwelling and used to provide accommodation for a person dependent on a resident of the existing dwelling.
The land use term and definition (https://www.planning.vic.gov.au/guides-and-resources/strategies-and-initiatives/small-second-dwellings) for ‘dependent person’s unit’ was removed from the Victoria planning provisions and all planning schemes by Amendment VC253. Transitional arrangements in VC253 meant that some proposals for dependent person’s units that had already commenced could be completed.
In 2024, Amendment VC259 made changes to the Victoria planning provisions and all planning schemes to allow new applications for dependent person’s units to be made for 12 months. The provisions, at clause 52.04, originally expired on 28 March 2025. They have since been extended by VC266 and VC304 and now expire on 28 March 2027.
Can I rent out my tiny house or have friends and family come stay?
If the tiny house is not considered to be a self-contained dwelling (ie self-contained and contains kitchen sink, food preparation facilities, a bath or shower, and a toilet and wash basin) it may be defined as an outbuilding, an additional bedroom for friends and family or as a bed and breakfast.
In most circumstances, this would not require a planning permit.
You may also need a building permit for habitual use. Visit our Do I need a building permit? page for more information.
We recommended you contact Council about your proposal to confirm the permit requirements.
Can I set up as a bed and breakfast?
The common meaning of ‘bed and breakfast’ is different to the definition of a bed and breakfast within the Planning Scheme. A bed and breakfast is defined as:
- ‘A dwelling used, by a resident of the dwelling, to provide accommodation for persons away from their normal place of residence’.
To be classified as a bed and breakfast:
- There must be an existing dwelling
- The dwelling must have a resident, ie you live in the dwelling and rent out a back bedroom or habitable room to a person on holidays.
- Must not be defined a separate or additional dwelling (i.e. fully self-contained).
Provided the definition is met, a planning permit is not required in most zones to use the land for a bed and breakfast.
We encourage you to contact council about your proposal to confirm the permit requirements, as there are exceptions.
A separate council permit may be required for Short Stay Accommodation under The Public Health and Wellbeing Act 2008.
In April 2026, The State Building Surveyor has confirmed to Council that tiny houses located on private property and outside registered caravan parks are subject to Victoria’s Building regulatory framework. A Tiny House that is intended for habitation and is not a registered vehicle is regulated as a building, regardless of whether it is described as temporary, moveable, or short‑term accommodation. In these circumstances, a building permit is generally required unless a specific exemption applies under the Building Regulations.
In 2024, Council approved its 15-Year Housing Strategy which clearly states that housing is a fundamental human right and essential for people to achieve an adequate standard of living. Council understands the challenges with the current housing crisis and why residents want to use a tiny house on wheels or similar alternative solutions, such as caravans and mobile dwellings, to assist with housing.
The rules around living in tiny or moveable homes may appear to be just red tape, frustrating and confusing. However Council has a legal and moral obligation to ensure that people who choose this option are in locations where it is safe from fire, flood or landslip, is healthy with regards to wastewater disposal and provides suitable accommodation.
For permanent accommodation, a planning permit may still be required even if the tiny house on wheels is moveable and is a vehicle that is registered or legally able to be registered to drive on public roads. Given Yarra Ranges’ rural location and risks with bushfires, floods and erosion, it is vital that clear information and definitions are provided to councils and the community to ensure that people are safe in the locations where they place a tiny house on wheels.
Council takes the housing crisis seriously and continues to advocate to the State Government, the Department of Transport and Planning, and the Victorian Building Authority to ensure clear rules and regulations for safe, lawful, and appropriate housing choices for all Victorians.