Tiny House rental park?
I would check local zoning codes and go talk to some people in your city. Zoning would absolutely be an issue if it's not zoned for that. Zoning code also has regulations on how much space must be between properties, road, etc.
@Ryan Gady, there would most probably be issues with zoning. After you decide on an area, the first questions you should ask are about mimimum dwelling size, lot size, etc. Also find out about utilities. What does it cost to tie in to the water, sewer, and electric.
Tiny houses will be much higher per square foot than a larger house. I have 2 tiny houses on wheels, one that's 8' x 18' and the other that's 8' x 20'. Those were both less than $35K. I am fortunate that we live in an unincorporated area out in the country, so we don't have zoning restrictions.
Great idea! Very interested to hear what people have to say, especially from someone who's already done it. Tiny houses rock!
My guess is you might be able to simplify the process by starting with land zoned for a mobile park. But I know nothing about this...
I have seen this done a a subsection of a campground. Rented out only seasonally though. Zoningwill be your biggest hurdle depending where you live.
#2 General Landlording & Rental Properties Contributor
You will have every imaginable problem with zoning, permits etc assuming you can even find a location that will allow tiny homes. They are generally banned in most areas.
Additionally costs to start will be high and you will have no return for many years to cover those expenses. These are the primary reasons why mobile home park investors never build parks.
If you want to go this route buy a mobile home park that will cash flow day one as opposed to building, investing tens or hundreds of thousands and taking 20 years to actually see positive cash flow.
I'm in Portland, OR area. Zoning and permitting is difficult but some folks did this...
My guess is that this would be an upscale mobile home park. I know people do it, you see them on HGTV so it *must* be real, right? ;)
Great plan. I love tiny houses. even though they really aren't real estate...
#2 General Landlording & Rental Properties Contributor
The people on the HGTV shows are actually placing their homes (mostly) on a "friends" property because MHCs and RV parks do not allow tiny homes. The only place to legally place them is in a city or state acceptable "community". You must find a area that allows them first. I believe there are several states, or counties within states like CA that do allow them.
Most buyers do not last long in them and the resale values are very low. They are basically either stick built luxury RVs or park model mobile homes with no place to go. They have been around since the 50s and are being reinvented by air head idealists as a new concept.
If you could get a community established, which would take a lot of seed money you should expect a high tenant turn over. They may be better suited as vacation rentals.
@Ryan Gady there was actually that concept done here but differently than what you are thinking (maybe). There was a tiny piece of land near a creek that couldn't be built on and no one wanted it. He bought it and built tiny condos instead. Had fire walls and all and they were two story with a small balcony on the back overlooking the creek. It was ingenious because right across the creek is a park and beside the park is the college. They could walk to class or to the grocery store. It is rented fully.
There was just a tiny house retreat on Shark Tank this week. They were saying about a 30k build with land out in woods.
In city areas you need permits for everything. Where I live in the sticks (I'm in West Gardiner, Maine) you can build almost anything as long as it doesn't fall down without much in the way of permits. Sounds like a joke but it's pretty accurate. Yes you need plumbing and electrical inspected. Yes you still need to follow state and federal laws like building near water. But the town is pretty hands off.
#2 General Landlording & Rental Properties Contributor
The biggest issue is actually that they do not meet building codes, interior stairs to a loft sleeping area would never meet code. Electrical, plumbing etc are generally on the level of a RV and for this reason can not be certified for habitability depending on local codes.
Im in Portland too. I must say the cost of legally buid a tiny house is arund 60 to 100 k and rents vary from 600 to 100 0. if you rent as a weekend or 2-3 days a week you can get a125 to 150 a day. If you do the math is it worth?
Propert taxes will increase and
Thanks for all of the input. I think it is an exciting idea for someone who has the capital to make the project happen. You would need to be well versed and creative about zoning laws and building codes. It would be geared toward more of a niche market in Indianapolis, but I think that could be an advantage here vs. a place like Portland where this type of thing is more common so there is more competition and it's more expensive.
Hi Ryan, Marion County zoning code is pretty easy to understand now that they updated it last April. I've discussed this with others here and there. The conceptual approach to this is to think of it as a mobile home community w/ design standards. The way to operate is to develop a lot and let people bring their own Tiny House and lease it if they want to with you as site manager. There are plenty of variations on the theme, but if you look at it through then lens of zoning, you're talking about a mobile home community. In Indianapolis, the zoning classification is D-11.
@Ryan Gady
Are you still seriously considering this or have you made any advancements?
If so, PM me! I would love to hear about your ambitions. Maybe I can help.
@Leigh Ann Smith
Very cool! Did you build or purchase your tiny's?
Originally posted by @Jason Kahle:
@Ryan Gady
Are you still seriously considering this or have you made any advancements?If so, PM me! I would love to hear about your ambitions. Maybe I can help.
Hey Jason, your website didn't come up. Do you build tiny houses? If so PM me and let's talk.
@Jason Kahle, we purchased our 2 from SD Tiny Homes (they have a Facebook page, but no website) in Alvin, TX. They are currently building 2 more tiny houses.