BUILDING A TINY HOME TO RENT If you are going to use your tiny home for short-term rentals, pick an area close to tourist attractions, parks, beaches, schools and business districts. Before you begin, find out if you can legally operate a short-term rental in your intended area. Many municipalities have minimum square footage requirements for residences. Some areas may regulate ADUs or require specific foundation types. There may also be certain prerequisites regarding plumbing and electricity. It is highly recommended that you hire a builder who is also familiar with the tiny home laws and regulations for the county in which you will be developing. Financing for your tiny home may be more difficult than if you were constructing a traditional home, but you may be able to secure an FHA loan. If the tiny house is fixed to a permanent foundation, potential owners can explore conventional mortgages.
You may be considering creating a tiny home community of multiple small homes. Remember, you need to make sure the cost of its development does not surpass your potential ROI (return on investment). As a tiny home developer, you may receive a high return on investment due to their inexpensive prices. Currently, the largest tiny home development in the country is located in Salida, Colorado, and features 200 tiny homes for rent. The homes include amenities like free Wi-Fi, air conditioning, and heating. AAOA member Alex Gladkov is presently building a tiny home community in Barstow, CA, which will eventually include 51 residences. Alex shared that “Hidden Mesa Estates offers a great financial advantage for those who seek a sleek house without the burden of costly rent.”
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