The ideal rental home seems to change on a dime as new renters enter the market with their own set of priorities. As the trend of minimalism continues to gain traction, so does America’s obsession with tiny homes. The idea of cleaning out your clutter and downsizing is quite popular now, and many people are looking to leave behind a life of grandeur to live more simply. So, should you be considering investing in tiny homes? And is renting tiny homes a viable option?
So Many Factors, So Little Time.
There are many different types of tiny homes, which means that investing in this type of property requires a lot of research. While some tiny homes are built on a foundation, others are mobile. This presents the opportunity to move your rental should you ever need to, but it also opens up the possibility that tenants could find a way to run off with it as well. These factors also effect the cost, which is something that you’ll want to keep in mind
Don’t Forget About the Red Tape.
With each city having its own zoning restrictions and states all having differing legislation, there may be limits as to where you can put a tiny home. Even if you can build or buy a property for cheap, it may cost more for the land than you’d expect. If you can’t find a lot available for purchase to place a tiny home (whether it be in your own backyard, a separate property, or in a tiny home community), you could be stuck renting a space in an RV park to place your property (which can cost as much as $1500 a month). Be sure to know the laws regarding tiny homes in your area, as they could make it difficult for you to have any success with this type of investment.
Are Tiny Homes a Trend that will Last?
While tiny homes are quite popular now, it’s questionable whether they are a good investment. Someone may be able to find success with this type of investment, but there’s a lot up in the air. Who knows how long this fad will last, and some have said that they have found it hard to sell their tiny homes. As investments like these can depreciate over time, you don’t want to be stuck with a property that you can’t sell when you need to. Should you decide to that you want to give selling tiny homes a chance, there are sites such as Try It Tiny and Tiny House Listings to help you set a price, and, of course, ApplyConnect is always here to provide fast and reliable tenant screening when you want to rent them out.
It seems as though renting tiny homes could be an option, but would be better suited for short-term rather than long-term rentals. With so many variables surrounding this type of investment, taking them on could be quite a risk. However, should you choose to dip your toes in the water of this popular trend, make sure to do your due diligence. As the legislation surrounding tiny homes isn’t very consistent from state to state, you’ll want to know the regulations in your neck of the woods.
Have You Considered Renting Tiny Homes?