Optimising tiny house rentals
Take advantage of the booming tiny house movement for your next holiday rental. Here’s what you need to know.
September 2024
In recent years, there’s been no hotter trend in real estate than tiny houses. Why limit these properties to regular homes? Tiny homes for holidays can be a fresh, novel way to turn a profit. Read on for more information.
Tiny home rentals: the basics
The tiny house movement started in the United States, where properties are typically very large. These mini homes buck the trend, but they’re more than just small houses. The idea of a tiny house is, essentially, a regular house that’s just been scaled down. It should still have all the amenities that people need but packed into far less space than usual. Many have fun features like fold-out furniture, careful use of mezzanine floors and lofts, and hidden storage areas.
One of the reasons why tiny houses have become so popular —apart from their affordability— is that they are very cute. In the social media age, people love sharing pictures of interesting, unusual things, and a good tiny house fits the bill. That can make them particularly suitable as holiday lets. A tiny house may really stand out on a holiday rental website thanks to its quirky features and unique style. Guests who want something a little offbeat and different may well flock to these properties, which can be far more appealing than renting a holiday flat.
The pros of tiny house holiday rental
Is it worth choosing tiny homes for rent as part of your holiday property portfolio? Let’s consider the reasons why you might want to invest in one of these houses:
First of all, they can be far more intriguing than a regular rental property. When people first start searching for “rent my holiday home”, it might all seem so easy, but when you’re trying to find guests for a holiday flat that looks just the same as every other holiday flat in the city, it’s hard to stand out. Tiny homes are often really special, with a unique selling point that makes them extra appealing. For example, you might have an adorable log cabin in the woods, a quirky converted garden shed or even a shipping container —all fascinating, unique properties that stand out from the crowd.
Secondly, tiny houses are usually pretty cheap. In fact, when the tiny home movement started, many of them were built by their owners. Even if you don’t build the structure yourself, you may find that furnishing and decorating the home makes a great DIY project. If you’re at all handy, then setting up tiny houses for rent can be significantly more affordable than going for larger properties. You don’t need a large plot of land for a tiny house, either. In fact, you could even opt for a mobile tiny house like a caravan.
Finally, tiny houses are environmentally friendly. They generally have lower running costs because they conserve energy better than larger properties. They’re often associated with low water and electricity bills, and of course, they take up very little space. This is good news if you want to attract eco-conscious guests who choose to rent tiny houses to help the environment. These guests may be a lot more pleasant and respectful than stag or hen parties or other holidaymakers.
The cons of tiny house rent for holidays
There are two sides to every story, so what are the downsides of choosing a tiny house? Here are a few things to keep in mind:
First up, tiny houses may not make the best long-term investments. The property value of one of these mini homes may not be fair, as they sit on very small plots of land —or, in some cases, they don’t have a permanent plot of land at all. A small holiday house may be a good choice for rental income, but keep in mind that you might not get the same resale value as you would with a larger property.
Next, they often require more maintenance than you might expect. Some tiny homes don’t have the capacity for standard plumbing, for example. This leads to ingenious solutions, such as foot pedal sinks and compost toilets, but in turn, these are more time-consuming to maintain than a regular home. This means you may need to put in more work between guests to ensure everything is ship-shape. Alternatively, if you simply don’t have the time, you might want to employ someone to take care of the home, but of course, that can be costly.
Finally, financing a tiny home can be difficult. Traditional mortgage brokers are often uncomfortable with unusual properties. In some countries, tiny houses have become a trend, but in others, they are still viewed with suspicion. For example, there are not that many tiny houses in the UK for rent, and you might struggle to raise a mortgage if you need one.
Advertising a tiny holiday home
If you’ve made the decision to choose a tiny home for your holiday rental, then it’s time to start looking for guests. The good news is that a tiny house can frequently market itself. It will probably be one of the most unusual properties on your chosen holiday rental portal, so make sure you take advantage of that.
To advertise a holiday home, you’ll always want to get great photos. That’s particularly true with a tiny house, as you probably don’t have a garden or patio to show off. Don’t try to disguise your property’s small size —after all, that’s one of its major selling points! Instead, highlight its quirky features, which guests may find particularly appealing.
By its very nature, a tiny house can’t fit many guests. It’s a good idea to make that crystal clear in your advertisement. Be prepared for guests attempting to break the rules by sneaking more people in. You’ll want to be very firm with them. Not only are too many people in a small property a potential safety hazard, but they also increase wear and tear.
In fact, wear and tear is another thing worth considering. You might find that a tiny home needs soft furnishings and similar items replaced more frequently. If there’s only one chair to sit on, then the seat cushion will probably wear out quite quickly. Keep an eye on those details. In a small property, every little detail matters, so make sure yours is perfect.
A tiny home can be a unique, thrilling holiday home that leads to big profits. If you can add one to your property portfolio, you might be surprised by how successful it can be.