House hacking means living in a home that has a rentable cottage or flatlet so the mortgage gets lighter without giving up privacy or peace of mind.

Do it well and the maths shifts in your favour. Do it badly and you trade sleep for stress.

Start with design that preserves separation. A private entrance for the flatlet, separate water and electrical meters if possible, and simple soundproofing where rooms meet will protect daily life. Keep the rental unit compact and self-contained so your tenant has everything they need in their flat.

Paperwork first. Draw a clear lease with rules about visitors, parking, and noise. Check municipal zoning and body-corporate rules before you convert anything. Put rental income on the right side of your tax return and speak with an accountant about allowable expenses for interest, repairs, and rates.

Screen tenants like a small business. Ask for ID, proof of income, and references. Meet people in person and inspect previous rental history. A reliable tenant reduces turnover and maintenance headaches.

Budget for realities not romance. Expect repairs and a vacancy gap and build a small maintenance float into monthly costs. Insure the whole property and declare the rental to your insurer so you are covered for liability.

Decide on short-term lets only if you want higher yield and higher work. Long-term lets usually give steadier cash flow and less admin.

If you want to trim the bond without drama, keep the household rules simple, and the lines between private and rented space clear. The goal is steady income, preserved privacy, and a mortgage that feels manageable rather than a second job.