A granny flat is a fully self-contained home extension that is built on the same division of land that the main home is. Essentially, it is another, smaller home on your property. Usually, the granny flat is located to the rear of the main home. In Victoria, a granny flat is also known as a Dependant Person’s Unit (DPU). There are strict regulations in Victoria with regard to the construction of granny flats. Some people may use the term granny flat more broadly in reference to any additional dwelling, including detached extensions, studios or bungalows.