Police have charged a young man with murder after he allegedly stabbed his landlord at his rented granny flat.

Officers were called to a home on Courallie Avenue in Homebush West, in Sydney‘s west, following reports of a concern for welfare about 11.30pm on Friday. 

On arrival, they discovered the body of a 65-year-old man inside his rental property.

Police established a crime scene and during their investigation discovered a knife at the site.

A 31-year-old man, who is believed to be the tenant, was arrested at the scene.

He was taken to Auburn Police Station where he was charged with murder on Saturday.

The young man was refused bail and is due to appear at Parramatta Local Court on Sunday. 

‘The death of anyone under these circumstances is absolutely tragic,’ Superintendent Robert Toynton told reporters.

‘Anyone in the community who has got any information between 6pm and that 11.30pm timeframe, we’d like to hear from you,’ he said.

‘This is quite a contained incident, and we believe the man has died in the granny flat at the back of the property.’

Earlier on Saturday, police had said the two men were believed to be known to each other but ruled out that it was a domestic violence incident. 

Resident Steven Chand described the feeling on the street to Nine News following the incident.

‘It’s quite intense actually, just knowing that it’s just across the road. I did notice just some weirdness out there, but yeah, there’s not a good feeling.’

The cause of death will be confirmed during an autopsy and a report will be prepared for the Coroner.