If you rent out your house, that is classed as an asset and the rent is income, which you have to declare to Centrelink. And depending on its value, you may have a longer than usual waiting period before payments can start. Reason being is, if you assets (like Real Estate, except for the house you're living in) then they are able to be sold. That's the way Centrelink will look at it. If you're living in your home, they don't look at it like that.
Before doing anything like that, I would seriously consider speaking with a financial advisor. They'll let you know what the best options are for you ATM.