The ways to invest in a tiny house are limited only by the entrepreneur’s imagination. Tiny or modular homes are an excellent investment option for long-term rentals, vacation properties, and host share options like Airbnb or VRBO. But did you know you can also flip a tiny house or rent space for people to put their own nomadic home on?
Turn Key Fabrication makes your investment easy by answering questions, providing information on everything prefabricated, and delivering a tiny home or room that is assembled in less than twenty-four hours, with no prior experience needed.
Are you feeling inspired yet? Here are five different ways to invest in a tiny house.
Number One: The Classic Rental
As more people are looking to reduce their carbon footprint, travel, work nomadically and lower housing costs, tiny living is becoming increasingly appealing. In fact, sixty-three percent of millennials would consider buying a tiny house.
If you think full-time housing and tiny living don’t go together, think again; tiny’s can be rented out similar to a traditional home. In most cities, a modular structure can be added as an extension on an existing residential property and leased out.
According to Business Insider, the average rental income of a tiny home would be nine hundred dollars. Clearly, there are many factors to consider when looking at this figure- initial cost of investment, the geographic location of the investment, upgrades or special features, and physical sleeping space, just to name a few.
Number Two: Vacation Rental
Vacation rentals and tiny homes also go together. A tiny vacation rental can have a higher market value than a traditional home, especially for novelty properties (such as a yurt) or those in highly desirable geographic locations (think: beach, mountains).
Tiny living is seen as an exotic or unique lifestyle, so you’re offering more than ‘just’ a rental property when renting out a vacation home. Like all prefabrications, tiny homes can also be customized, such as for yurts, tee-pees themed spaces or rustic cabins. Turn Key Fabrication’s Tiny Room is an excellent way to dip your toes into tiny investments, especially if you’re low on space.
Number Three: Host Share or Airbnb
A host share site is a third-party business that lists the home online, and potential vacationers book through the company directly. The big names in host share are Airbnb, VBRO, and HomeAway. Typically, a yearly fee is paid, and a percentage of the booking fee goes to the company.
Host sharing is a mostly hands-off way to add monthly income to your portfolio, and can be completely passive should you hire a property management company. Turn Key Tiny Home’s are an excellent option for a host share for several reasons. With the innovative building methods and materials that we use, you can be confident that your investment is well built, insulated, energy-efficient, and can keep up with the wear and tear of continuous use.
If you’ve got limited space and aren’t ready for an entire house, our Tiny Rooms are a fantastic way to invest. Tiny Rooms are quickly put to use as a small studio with a bed, small fridge, microwave, and sitting room.
Number Four: Flip a Tiny House
Looking for a tiny house investment opportunity but don’t have the space for one? Or maybe you’re just not a fan of buy-and-holds. How does one flip a tiny house anyway? Let’s dive in.
There is a high demand for tiny homes, especially among millennials, those living the nomadic life, and off-grid communities. However, many people interested in tiny houses do not have the skills required to repurpose a structure that someone else previously owned.
So, how do you flip a tiny house? The most common way is by purchasing used tinys that need repair or have seen better days, then remodeling, similar to flipping a traditional home.
Online listings are the best place to find a potential flip. Websites like Tiny House Listings have a massive catalog of tiny homes for sale. This allows you to browse prefab options across the US to get a feel for the market and hunt for flipping projects.
Number Five: Rent land to Tiny Home Owners
The fifth and final way to invest in the high-demand tiny industry doesn’t require purchasing an actual prefab structure. Instead, investors who already have property can rent out space for those who own a tiny house but have no land to put it on. Here are some ways to do that.
Firstly, consider that space can be rented on a temporary basis. This is a good fit for people who have their homes on wheels and travel around, either for recreation or as part of a nomadic lifestyle. The land becomes a temporary campsite for a few days, up to a month in some cases.
Another investment option is creating a tiny home community. This is a location where people can rent a space on a short or long-term basis. A vacation destination place is an excellent location for such an investment community. In some situations, homes may only be occupied for a few months out of the year. Taos, New Mexico, for example, has a lot of snowbirds who hit the slopes each winter and then return home. A tiny home community allows a place to leave their tiny home year-round while only occupying it for a short time.
Lastly, space can be leased on a more permanent basis. A yearly contract can be a significant investment, fitted for those who own a tiny home but don’t have a place to put it or are not interested in buying land. Think of this as a traditional house rental, except the property owner does not have to do any upkeep on the home, simply supply a space for them to park.
That was five different ways to invest in a Tiny House or Tiny Room. Are you ready to get a personalized quote? Turn Key Fabrication can fully customize any product, depending on the size and usage of the home. Contact us today- we’re excited to design a solution for your specific needs!