Tiny House

Tiny House Rental Business: Everything You Need To Know

By taufiqhaque

The tiny house movement is gaining more support throughout the state and the world. The concept of a minimalist lifestyle is finally getting recognition. It offers more opportunities and experiences. Want to start your tiny house rental business? Then read this article. We have discussed everything you need to know about tiny home rentals.

But we business-minded people can take advantage of this movement by creating our tiny house rental businesses.

Think about it. It is a win-win for both parties. You are earning extra revenues by renting your tiny houses, and your tenant has a diversified tiny home experience.

But as long as tiny homes are considered, there is always a gray area of law that makes it difficult. The truth is there are not many rules and regulations established for tiny homes.

Don’t worry. We will help you know and learn everything you must know to start and run a tiny house rental business. So let us begin.

How To Start A Tiny House Rental Business?

Renting your tiny house in the backyard is one thing. It is as simple as looking for a tenant and renting it. But starting a whole tiny house rental business is a big deal. You will have to go through various steps to start the business. Then there are other things to consider for keeping the business running.

Let us have a look at these steps in detail.

Plan the Rental Business

At first, you will have to do thorough planning of your tiny house rental business. This is the most critical phase of all business. So take as long as you need to do your research and plan for the rental business.

While planning the rental business for tiny homes, be sure to find out the following key factors.

Who will you be renting the tiny homes? (Your target market), Who are your competitors? How much will it take to purchase tiny homes to start the business? How much can you charge each tenant for rentals? Can your business sustain itself in off-seasons?

In addition, what kind of brand do you want your rental business to be? Pick a name and a tagline for the business.

As you can see, this includes lots of research, fieldwork, and brainstorming. Don’t be alarmed if you think that the research and planning will take too much time. It is better to start prepared than rushing early to the unknown.

Register your business

The next step is to register your business. You must register your business. You don’t want to get tangled in legal troubles for renting your tiny houses.

You will register your business for paying tax and other legal facilities. Apply for an EIN.

As we are in the registration phase, you should consider making your business a legal entity and register as an LLC. This will give you personal asset protection.

If your business gets sued, your assets will stay off the hook legally.

Obtain All Necessary Permits

After registration, you must have all necessary business permits. The permits should be issued by the local municipalities of the business location.

Getting these licenses and permits will be a lengthy process, but it will keep your business safe from fines and other legality problems. So take your time and pre-prepare for all legal problems that your business may face in the long run.

One more thing to keep in mind is that these licenses and permits have an expiry date. Be sure to renew them.

Create Business Bank Account

Opening a dedicated bank account for your tiny house rental business will be wise. Keep in mind that we are talking about establishing a rental business. We are not just renting your tiny houses in the backyard, but we are making a whole community for tenants.

So it sounds natural to open a dedicated bank account for the business to keep the accounts in check.

There are more benefits of opening a dedicated business account. Keeping the business account separated from your account will keep your personal property safe and secure from any legality issue/ suing of the business.

Buy and Set-up Your Tiny Homes for Rental

Now it is time that we do some actual work. You will need to buy or build tiny homes for rent.

You must have already planned how you will execute this step. Build the planned number of tiny homes and set them up in your land for rent.

Of course, you can wish to buy instead of build. What would we recommend? If you have the time, and money, then choose to build new tiny homes. This will give you creative freedom and bring a unique touch to the tiny homes to represent your tiny house rental business.

But if you are short on time, then you may choose to buy. If you are buying, then you may have to consider the house size and type. Tiny homes built on foundations will be hard to transport. So I chose tiny homes on wheels for buying.

Keep in mind that tiny homeowners prefer to sell for cash instead of credits. So make sure you have plenty of cash available.

Set-up Defined Tenant Instructions

A common issue with tiny home communities is that the tenants end up using more land in the community than they are allowed. This can create a bad impression of your community.

You can avoid such bad impressions by pointing out all the tenant’s agreement instructions.

You should be transparent about the rules with every tenant in the community. This will keep things fair and square for everyone in your tiny house rental community.

Make A Brand For Your Business

Remember when we said that you are not just renting your tiny houses but establishing a business and a community of tiny homes?

Well, to make that happen, you will have to make your business a brand. This involves market research and more brainstorming.

Come up with an attractive and easy brand name for your business. The name should be easy to remember and must resonate with your tiny house community.

Create A Tiny Home Rental Business Website

You should catch up with the modern trends to promote modern businesses. The tiny house rental business is a relatively new one.

Besides, most tiny house rental businesses are using websites to promote their businesses throughout the country. So you should do the same too.

While creating a business website, you should hire a professional website designer and a professional graphics designer. Make sure to get a faster and more secure domain.

Also, be sure to hire an online content manager to keep your website lively and engaging.

So these are the basic steps for starting your very own tiny house rental business. Keep in mind that every situation is not equivalent. We are trying to say that you should prepare for more obstacles while establishing your tiny house rental business.

The Pros And Cons Of Tiny House Rental Businesses

Like all other things in the world, renting your tiny houses has some good and bad sides. If you plan to start your tiny house rental business, you should be aware of that.

So here we have discussed the pros and cons of the tiny house rental business for your knowledge.


Here are the top benefits of running a tiny house rental business.

Diversity of class

There is no need to worry about the category/ type while renting your tiny houses. Tiny homes are diversified. Each tiny house has its own story to tell with its interior and exterior design.

Moreover, there is no restraint in the design of the tiny house unless the state rules. If you follow the state-approved guidelines for tiny homes construction, you can go all out with your creativity.

You can use that to your advantage to showcase your brand value with the tiny house of your rental business.

Option for building and buying

With tiny house rental businesses, you have the option to build or buy tiny homes to add to your rental collection.

Both of these have their bright sides. Building a tiny home gives you the flexibility to add customized touches and add band value.

On the other hand, buying saves you time and money. These options may sound too valuable to be a benefit, but it is.

Environment friendly

Tiny homes are environmentally friendly. They reduce carbon footprint by decreasing the consumption of electricity.

What does this have to do with the owner? This makes you, the owner, an active promoter of an environment-friendly housing approach and helps the cause of saving mother Earth.


The tiny house rental business gives you more flexibility than traditional foundation home rentals. Traditional houses need to be built on steady lands. They must meet certain criteria and other permits to be constructed. Moreover, they take longer for construction.

On the other hand, tiny homes can be built anywhere. On the beach? River-side? Yes, it is possible unless the state law prohibits you from it.

This is a flexibility that you won’t get with traditional house rentals.

So tiny house rental business owners get more geographical location options.

A trend in vacation rentals

The tiny house rental business is now one of the leading vacation rental businesses. If you can establish your tiny home business in a tourism spot, you will earn more revenue than expected.

Room for extra revenue

You can use your tiny home community for extra revenue streams. For example, offer it for photoshoots, marriage ceremonies, and more. These will bring more revenues to you,


While tiny house rental businesses have many pros, there are some significant cons as well. Let us take a look at some of them below.

Hard to price

Renting your tiny houses may seem like an easy task, but pricing them is a hard part. As we have discussed in the pros, each tiny house is unique in its own way: interior, exterior, location, and placement-wise.

This does help in diversifying the business, but it also makes it very difficult to price them fairly.

Here is a hypothetical example. Unit 1 is a standard 100 square foot tiny home but has exotic surroundings. Unit 2 is a 200 square feet modern tiny home with all amenities. But the surrounding is nothing special. Which one should you price higher? It is difficult to decide, right? Moreover, will your tenets agree with your pricing/ rent criteria? 

It is one big conflict, but not impossible to overcome.

Frequent maintenance 

Tiny houses are not as sturdy and durable as traditional concrete houses. These houses are constructed using lightweight material for a minimalist lifestyle.

The drawback of the lightweight house construction is that it falls apart and needs frequent maintenance. This frequent maintenance increases the expense of the house owner (you) and makes things a little difficult for the tenant.

No established and defined law for tiny house rental businesses

Perhaps the biggest conflict/ cons of tiny house rental businesses are the lack of laws. There are no universal tiny home laws for all US states to follow. Some states have outright banned tiny homes.

The states that do allow tiny homes do not have clear building and regulatory instructions for the tiny home either.

These vague laws of tiny homes and tiny house rental make it a very difficult situation to defend against convictions.

You can look at it from a different perspective. Many states do not have detailed guidelines for tiny home constructions. But they may launch guidelines in the future. If your tiny houses do not match the guideline, then you will have to reconstruct them again. That will cost you time and money.

So these are the main disadvantages of running a tiny house rental business. Don’t get too carried away by these cons. Look alive into the pros. Be motivated and start renting your tiny houses.


So these are all the things that you must know before establishing a business and renting your tiny houses. We have discussed how to start a tiny house rental business and discussed the pros and cons of running a tiny house rental business.

We hope that you now have a detailed understanding of the ins and outs of running a tiny house rental business. If you are up for the challenge, then go for it. If you need any help or counseling, then give us a call.

You can also read: How Can You Convert Your Tiny Home into an Office

Tiny Homes

THOW is a platform to customize & buy modular home on the internet. We are the source of all things modular homes.

Phone Number:

+1 833-8288469