Whether it’s a family member between rentals, a mate saving for a deposit or even your own downsizing plan, more Australians are exploring alternative living setups—including parking a caravan on private property. It sounds like a simple idea: set up a van in the backyard, plug it into power and you’ve got an instant living solution.
But is it legal? What are the practical and legal risks? And what does your local council have to say about someone living in a van long-term on your block?
If you’ve recently been eyeing off caravans in Heatherbrae or are already the proud owner of one, here’s everything you need to know before turning that caravan into a permanent backyard dwelling.
The Legal Landscape: What the Law Actually Says
There’s no single national law on this issue. The ability to legally live in a caravan on private property depends entirely on your local council’s regulations—and they vary significantly across Australia.
In general:
- Short-term stays (a few days to a couple of weeks) are usually fine without formal approval
- Long-term living (especially anything over 60 days) often requires council consent or a special permit
- Unapproved dwellings—even if it’s just a parked van—can result in fines or compliance notices
Most councils categorise this under “unauthorised residential use” or “secondary dwellings.” They typically require caravans to meet certain safety and sanitation standards if they’re going to be used for habitation.
So before you hook up the power lead and invite someone to move in, you’ll need to check your local government’s position. Some councils are more relaxed than others, especially in rural or regional areas.
Key Considerations for Living in a Caravan on Private Land
Even if your council is flexible, there are several practical and safety factors to think through before setting up a caravan as a living space on your property:
- Zoning: Urban residential areas usually have stricter rules than rural or semi-rural properties.
- Access to amenities: Is there a toilet, running water, kitchen access and proper drainage?
- Neighbours: A complaint from a neighbour can trigger an inspection or compliance issue.
- Power and water connections: Is your property wired to safely support a separate living space?
Also, keep in mind that certain insurance policies won’t cover caravans being used as full-time dwellings unless it’s stated explicitly. If there’s a fire or injury on-site, you may find yourself uncovered.
Temporary vs Permanent Use: Why It Matters Legally
There’s a big difference between someone parking a van at your place for a few nights and turning it into their full-time home. Councils are far more likely to allow temporary accommodation than permanent residence—especially if it’s tied to a personal hardship or renovation project.
For example:
- Allowed: A family member staying for 2–3 months while recovering from surgery or between homes.
- Not allowed: Renting the van out full-time as a secondary income or granny flat alternative.
Some councils will allow long-term use if the van is connected to an approved septic system or if it meets minimum standards for ventilation, plumbing and fire safety. Others will insist on development applications (DAs) or limit stays to under 60 days per year.
The key is whether the caravan is being used as a primary place of residence—and if it is, that triggers a whole different set of legal obligations.
How to Check Your Council’s Position
If you’re unsure what your council allows, the best place to start is the council’s website. Look for sections like:
- Secondary dwellings or granny flats
- Temporary accommodation
- Caravan and mobile home regulations
Alternatively, you can:
- Call the council planning department directly
- Explain your specific scenario
- Ask whether written approval or a permit is required
In some areas, a compliance certificate can be issued for temporary use without a full DA. Other councils may have designated rules for bush blocks or properties over a certain size. Either way, don’t assume that “quietly doing it” will fly under the radar—councils can and do enforce penalties if someone lodges a complaint.
Power, Water and Waste: Getting the Essentials Right
Setting up a caravan for full-time living requires more than just a level surface and an extension cord. You’ll need to ensure the basics are covered, and that everything is compliant with safety standards.
Here’s what to address:
- Electrical connection: Use an approved power inlet with circuit breakers, not a household extension lead.
- Fresh water supply: Either connect to mains with food-grade hose or refill tanks regularly with clean water.
- Sullage and grey water: Properly dispose of grey water using a drain or portable tank—don’t just let it run off into the garden.
- Toilets: Cassette toilets need a designated dump point or connected black water solution. Long-term use without disposal is a health risk.
Failing to sort out waste properly is one of the fastest ways to fall foul of both the law and your neighbours. Invest in the right fittings, and make it easy for whoever is staying to manage the system cleanly.
Real-World Example: A Backyard Setup Done Right
Dave lives on a half-acre block in Lake Macquarie. When his adult son and partner returned from overseas with no immediate rental, they parked their 18-foot caravan in his backyard for four months.
Here’s how they made it work:
- Connected power via a certified 15A caravan socket installed by an electrician
- Ran sullage into an approved grey water system connected to existing plumbing
- Set a clear move-out date to keep it classed as temporary accommodation
- Notified the council in advance and kept use under 60 days officially
Because everything was above board, there were no issues—and the setup gave them breathing room to find their feet without stress.
Can You Rent a Caravan on Your Property to Someone Else?
This is where things get legally tricky. While letting family live on your property in a caravan may pass as a temporary arrangement, renting it out for income changes the game completely.
As soon as money changes hands and the caravan is used as a standalone dwelling, it’s generally considered a secondary residence. That often triggers requirements like:
- Lodging a development application
- Meeting building code standards
- Installing smoke alarms and fire exits
- Providing compliant access and sanitation
Some councils expressly prohibit caravans being used as rental accommodation unless they’re located in a registered caravan park or camping ground. Others may allow it under strict conditions—usually involving site inspections and compliance upgrades.
So if you’re thinking of listing a van on your block on Airbnb or Gumtree, check with your local council first. A few hundred dollars a week could cost you thousands in penalties if you’re found non-compliant.
Insurance and Liability: What Happens If Something Goes Wrong?
Let’s say someone is living in a caravan on your land and there’s an accident—maybe an electrical fault, a fall or a fire. Who’s liable?
Unless your property insurance specifically includes additional dwellings or outbuildings used for habitation, you could be left personally responsible. Likewise, caravan insurance may not cover residential use unless it’s been declared to the insurer.
To cover all bases:
- Inform your insurer of the setup and who’s living there
- Ensure the caravan is registered and roadworthy
- Add safety measures like fire extinguishers, smoke detectors and proper lighting
You should also consider a written agreement that outlines responsibilities for rent (if any), maintenance, and behaviour. It’s not just about legal protection—it sets clear expectations for everyone involved.
Future Trends: Will Backyard Caravan Living Become the Norm?
With housing affordability under pressure and rental markets tightening, many Australians are turning to creative solutions. Living in a caravan—either temporarily or semi-permanently—is gaining mainstream attention.
Some forward-thinking councils are already:
- Trialling backyard “tiny home” policies
- Introducing temporary dwelling permits for caravan stays
- Exploring portable housing options for seniors or adult children
But progress is uneven. Until national guidelines are introduced, what’s legal in one LGA may be off-limits just a few suburbs away. If you’re planning a long-term setup, start the conversation early and keep records of every approval or communication. It’s easier to prevent a dispute than to untangle one later.
FAQs
Is it legal to live in a caravan on someone else’s property?
In many cases, yes—but only under certain conditions. Most councils allow short-term stays in a caravan without requiring development approval. However, long-term or permanent residence may require special consent or a temporary dwelling permit.
The key factor is whether the caravan is being used as a primary residence. If it is, you’ll likely need to meet standards for sanitation, power, and waste disposal. Always check with the local council before setting up long-term.
Living quietly for a few weeks may not draw attention, but staying indefinitely without approval could lead to fines or compliance orders.
Do I need council approval to park a caravan on my block?
You don’t usually need approval just to park a caravan on your block, especially if it’s for storage or occasional short stays. However, living in it or letting someone else do so for an extended period may trigger the need for council consent.
Some councils also limit the number of days per year a caravan can be occupied on private land. Rural zones may have more flexible rules than urban residential areas.
To avoid problems down the track, contact your local council and ask specifically about long-term habitation, not just parking. There’s often a big difference between what’s allowed for storage vs residency.
Can I put a caravan in my backyard as a granny flat?
A caravan can’t replace a legally built granny flat unless it’s part of an approved temporary dwelling scheme. While it may serve a similar purpose—like housing a parent or adult child—it usually won’t meet the structural or zoning requirements for a secondary dwelling.
Some councils offer short-term or hardship-based exemptions, but these often come with time limits and minimum safety standards. If you need a long-term secondary living space, it’s better to explore prefab granny flats or modular homes that meet code.
A caravan can still be a great short-term solution, but check local rules if you’re planning to use it for more than a few months.
What are the risks of letting someone live in a caravan on my property?
The biggest risks are legal and financial. If someone lives in a caravan on your land without council approval, you could face:
- Fines or notices to remove the setup
- Loss of insurance cover if an incident occurs
- Liability for injuries or health hazards
- Neighbour complaints that lead to inspections
There’s also the potential for tension or conflict if things aren’t clearly agreed up front. Make sure you have a plan in place for rent, power usage, time limits and responsibilities. Even if it’s a family member, clarity protects everyone.
Is it cheaper to live in a caravan full-time?
In terms of rent and utilities, yes—living in a caravan is generally cheaper than renting a house or apartment. But there are still costs to consider:
- Setup costs for plumbing, power and sanitation
- Insurance and registration
- Council permits (if required)
- Ongoing maintenance and upgrades
It’s a great option for short-term living or as a stopgap during a housing transition. But for full-time, long-term setups, the costs can add up—especially if you need to meet compliance requirements. Think of it as low rent, but high responsibility.
Making the Call: Practical, Legal and Personal
Letting someone live in a caravan on your property can be a practical, flexible solution—but it’s not as simple as parking and plugging in. Between council rules, insurance liabilities and neighbour dynamics, there’s a bit to get right.
Done well, it’s a lifeline for someone doing it tough, a smart use of space or a stopgap during housing uncertainty. Just make sure you ask the right questions, get the right approvals and treat it with the same care you would a traditional dwelling.
Start your journey with confidence — visit 7th Street Caravans or give our team a call on 02 4012 6009 for friendly, local advice.