Author Topic: Build a tiny home for rental?  (Read 4435 times)

mrsggrowsveg

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Build a tiny home for rental?
« on: October 06, 2014, 12:16:15 PM »
We live on some land and on the other side of the property there used to be a trailer home.  It was removed two years ago when we purchased the property, but still has all of the hook ups.  We had the idea of building a tiny home on the property and renting it out.  It is a lovely and private piece of land that would probably be a neat place to live.  Has anyone done anything like this?  Could it actually be profitable?

DollarsAndDissonance

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Re: Build a tiny home for rental?
« Reply #1 on: October 06, 2014, 12:25:52 PM »
There was a NYT article earlier this year about this trend in Portland.

http://www.nytimes.com/2014/05/08/garden/grandma-never-had-it-so-good.html

Sounds like it can be a profitable arrangement for the homeowners.  Do you live in a place where the zoning laws allow it?

gimp

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Re: Build a tiny home for rental?
« Reply #2 on: October 06, 2014, 03:25:09 PM »
Could it be profitable? Absolutely. You're on the right track by thinking cheap; it's much easier to get $300/month for a $30k house than $3000/month for a $300k house.

Carrie

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Re: Build a tiny home for rental?
« Reply #3 on: October 06, 2014, 03:31:30 PM »
Look into container homes, might be a good bit cheaper than stick built. Would you do most of the construction yourselves?  I've noticed that square foot prices are outrageous when building small since you don't have economy of scale.

MKinVA

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Re: Build a tiny home for rental?
« Reply #4 on: October 06, 2014, 05:22:55 PM »
First, you need to find out if there is really a market for rentals where you live. Are you out in the country? Do people want to live there? If they do, what level of rent do they pay? If they pay that, would they pay that for a little house? Second, does the locality where you live allow such things? I know there was a house there, but was it a legal residence or rental?

I don't mean to rain on the parade. There are a lot of places in the US that are less free than others.

mrsggrowsveg

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Re: Build a tiny home for rental?
« Reply #5 on: October 07, 2014, 07:30:46 AM »
Thanks.  I will look into container homes.  I will also check out the zoning laws and see if there is a rental market in my area.

Elderwood17

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Re: Build a tiny home for rental?
« Reply #6 on: October 07, 2014, 12:04:11 PM »
Good luck and let us know how it goes.  I love the concept.

Hotstreak

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Re: Build a tiny home for rental?
« Reply #7 on: October 08, 2014, 12:18:11 PM »
I've seen the inside of some of these in Portland, Ore.  Some are very fancy (and obviously expensive to build), but others are very small and limited.  For instance, one I saw had only a mini-fridge, microwave, toaster oven, and sink for the kitchen.  From what I was told, there were very few issues filling vacancies. 

Tenants seem to like the benefit of their "own place", having no shared walls, possibly having access to yard, garden, etc., and being close to downtown without paying huge rents.  It's also a very hip/cool way to live.


mrsggrowsveg - It sounds like you're on a bit of land, is that correct?  How much land would you be using, for the house + whatever portion is the tenants yard to use as they please?  I wonder if you could build 2-3 tiny homes on the lot, creating a kind of community feel, with a covered picnic table, garden spaces for each house, etc.  Tenants may still get the benefits they're looking for, and you get to double or triple your gross rental income.

mrsggrowsveg

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Re: Build a tiny home for rental?
« Reply #8 on: October 09, 2014, 07:36:58 AM »
We do have a fair bit of land, but where the tiny house would be doesn't have access to a big part of the land.  The community idea could be great for some of our farther away pieces of land if it was not so expensive to get electricity out there.  Thanks for the idea.

jmoney

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Re: Build a tiny home for rental?
« Reply #9 on: October 09, 2014, 01:36:16 PM »
What state are you in? In Ohio I could build a 3/2 slab ranch for 90k that would rent for 950 a month. I could also buy a similar fixer upper and be all in for 40-45 k and rent for 825.

I think its not a bad deal to build, but there are better fix and rent deals.

You could also build and sell the house plus a small piece of land.

adamcollin

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Re: Build a tiny home for rental?
« Reply #10 on: October 12, 2014, 09:57:48 PM »
.
First, you need to find out if there is really a market for rentals where you live. Are you out in the country? Do people want to live there? If they do, what level of rent do they pay? If they pay that, would they pay that for a little house? Second, does the locality where you live allow such things? I know there was a house there, but was it a legal residence or rental?

I don't mean to rain on the parade. There are a lot of places in the US that are less free than others.

Consider the above reply and research the market a bit before you go ahead with the construction.

Christiana

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Re: Build a tiny home for rental?
« Reply #11 on: October 13, 2014, 12:14:02 AM »
The zoning might also mandate a minimum square footage for a fixed dwelling (as opposed to a mobile home).  Some friends of my parents had a very small house in the country, about 300 square feet, and were eventually forced to build something larger.

Bob W

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Re: Build a tiny home for rental?
« Reply #12 on: October 13, 2014, 05:45:16 AM »
A trailer would make more sense.  You could buy a nice used one for 15k and rent for 350.  Be careful to find a really good renter.