While many people make the choice to go tiny as a way to reduce their carbon footprint, downsize, or have greater mobility, a tiny home can also be a great way to generate income. The most common way this has been done is through Airbnb. Check out one of our clients who listed her Tru Form Tiny on Airbnb in Atlanta.
How to Make Money from a Tiny Home
After finding a place to put a tiny home, there is usually limited upkeep and they are small spaces to clean. This makes them perfect for Airbnb. Although the initial cost of buying a tiny home may deter some buyers, buying a tiny home as an investment can prove to be very profitable. There are a lot of tiny homes already listed on Airbnb ranging in price from 50-200 dollars per night and with little to no utilities. Placing a tiny home on your property, or on rental property could consistently bring in several thousand dollars a year.
“How do I set up a Tiny Home to rent it out?”
Step 1 – Find a location
The location can be a key determinant of how much money your tiny home rental makes, so choose wisely. It is always good to place a rental unit in a location that people are likely to visit and if it is for vacation, the prices can go way up! Also keep an eye out for lake or beach property, as it will surely raise the value of the listing. That being said, it is usually cheaper to place one on your own property (just check local regulations). You can see more about how to find a home for your tiny home here! Tru Form Tiny can deliver all over the US, so after you have a place picked out, we can deliver it to you!
Step 2 – Design your own
After you find a location, design your own with all the features you want to list it on Airbnb. Some good things to consider while building it are whether you will want to list it with an extra bedroom, a bigger kitchen, or extra seating. Adding more beds, lofts, and pull-out couches all increase the price you can ask on your rental. A washer/dryer, heating, and A/C are all options you might want to consider, because they are highly desirable to Airbnb users.
Step 3 – Furnish and take pictures
After you have your tiny home delivered and hooked up, you need to furnish it! There are a lot of cheap items (that classify as amenities) you can add which will make your home more appealing. These include hangers, essentials (i.e. towels, bed sheets, soap, and toilet paper), cooking basics (i.e. pots and pans, oil, salt and pepper), and shampoo. Don’t forget to grab some sheets, pillows, and little decorations to make it feel more like a home. You can see all the amenities Airbnb customers want here!
Step 4 – List it!
Once your tiny home is ready, take some pictures showing all the great features and list it on Airbnb! Get creative with the name and make sure you highlight what you want your guests to see. It may be hard to gain traction at first, so you might want to start the price out a little lower. After you get a few good reviews, you can start raising the price! It is also a good idea to adjust your prices seasonally, so you can raise the price when more people are coming to the area!
Other Things to Consider
While a tiny can make for a great Airbnb, you should consider how you will clean it, manage it, and maintain it. Cleaning and managing a rental can be time consuming, so if you are planning on cleaning it yourself, make sure you will have the time. You can also hire someone to clean it after each guest for a flat rate, but this will cut in to your profit margins.
Example Budget
Location: City/Beach/Lake/Mountain/Close to National Parks
Airbnb $80.00/Night (Low Season, Oct.-April) 10 nights booked/month = $5,600
$125.00/Night (High Season, May-Sept.) 20 nights booked/month = $12,500
1 year = $18,100
