Choose the Right Location

When it comes to rental income, especially in a tiny home, location is everything. Many people rent out tiny homes when vacationing or traveling, so tourist destinations are a great choice in location if you don’t mind short-term tenants. Longer-term tenants will want to move near their work or convenient amenities, so you’ll likely find longer-term tenants in popular urban and suburban hubs.

Season will matter significantly, especially in certain areas for short-term rentals. In northern states, you’ll see the most short-term tenants from May through September unless you’re setting up shop in popular ski or snow areas. You’re more likely to find year-round income in warmer regions like southern California or Florida. In popular destinations like New York City, Los Angeles, or Miami, the season won’t matter as much.

Financing Considerations

How you pay for the tiny home will impact how much money you make, especially if you purchase through a lender. You’ll be paying off housing debt at first if you opt for a loan to pay for your tiny home investment. There’s nothing wrong with lending; in fact, it’s a popular way to invest in real estate. There are even loans for investors, like DSCR (debt service coverage ratio) loans, that will be issued to you based on estimated rental income.

You can even secure great rates on DSCR loans in smaller, less populated states like New Hampshire, Vermont, or Rhode Island. Opting for traditional loans may mean less money in your pocket for longer. If you want to borrow money for your tiny home, make sure it’s a good rate for investors.

Include Storage Space

Tiny homes are not well known for their storage space, but if you’re planning to cater to more tenants, your floor plan should include some smart storage solutions. Fold-out tables, under-bed storage, and shelving are all great options for tiny homes without sacrificing precious floor space. If your tiny home will utilize a small staircase, you can even include staircase storage options. Make sure you advertise storage space in product listings and photos to garner more attention.

Consider Mobility

A popular market for tiny homes are travelers, adventurers, and nomads. If your tiny home isn’t portable, it may be a dealbreaker for some. Not all mobile tiny homes are trailers—many tiny homes can come with wheels. If your design plan can come with a mobile option, you may want to consider it. You may secure more rental income if you can move locations according to popularity. 

Competitive Pricing

Don’t overcharge for a tiny home based on its popularity. You want it to be competitive but still affordable. If your tiny home costs the same as renting a large mansion, you’ll turn away many buyers. One of the main perks of tiny living is downgrading not just in housing size but also in cost. Factor in the size and affordability of your home into your listing price. You’ll make more money with a lower-cost listing and more tenants than with fewer tenants at a higher price.

Use Familiar Platforms

Many people use popular rental platforms to secure temporary housing, especially quaint, unique rentals like tiny homes. Take advantage of tiny home marketplaces and platforms like Airbnb and VRBO. They will take a percentage of your rental income but with great rewards. These platforms are great for marketing to your target audience and shouldn’t be ignored. If your tiny home gets popular enough, you can always leave the platform and generate more income down the road.

Take Great Photos

Your rental listings are where the magic happens. If your tiny home photos are low quality, you won’t gain much attention from them. Take staged, well-lit, and high-quality real estate photographs of all rooms, interiors, decorations, and the exterior. A phone camera can work for this purpose, but you may get more tenants if you employ a skilled photographer with framing expertise and professional-grade equipment.

Keep It Clean

You will want to hire a professional cleaner in between tenants to keep your tiny home in peak condition. A lazy cleaning job can get you bad reviews on rental platforms and generate a bad reputation for you and your listing. Unclean areas may also be a health hazard for you and your tenants. Invest in cleaning; you’ll maximize profits despite the cost.

Flexible Floor Plans

Many people rent out tiny homes for many purposes. Some tenants will be vacationing families, while other tenants will be single and career-focused. A flexible floor plan to allow for multiple guests, working, or entertaining can enable you to see more profits from more types of tenants. There’s nothing wrong with choosing a market or niche for your tiny home to fit into, but flexibility will appeal to broader audiences.

Conclusion

Tiny homes remain consistently popular for travelers, nomads, single people, small families, and those who want to embrace their “cottagecore” lifestyles. If you want to appeal to the broadest audiences, your tiny home should be multifunctional, attractive, clean, and marketable. Professional photography and utilizing popular rental platforms can help you do just that. Don’t be afraid to seek out the help of a real estate agent for the best tips and advice.