If you’ve ever wanted to buy an investment property to use as an Airbnb rental, you might be surprised to learn that many real estate investors are starting to buy tiny homes for this purpose. There are a ton of benefits to renting out tiny home Airbnb spaces compared to traditional homes, and if this sounds like something you’d like to do, the following list will give you some reasons to get started.
- Tiny homes cost less up front
Tiny homes cost a fraction of what standard homes cost, and even if you need to take out a loan to buy one, it will be paid off much faster and you’ll pay far less interest. For example, the average single-family home in the United States costs $430,000, but the average tiny home costs between $30,000 and $60,000.
With a typical mortgage, nearly 50% of your mortgage payment goes to interest and it takes decades to pay off in full. Additionally, you’ll need to buy mortgage insurance, property insurance, and pay property taxes. Then there are repairs, maintenance, and the cost of normal upkeep.
To run a profitable Airbnb business, it makes sense to buy cheap property. You can still charge a decent nightly fee for a tiny home.
- You can hire out the management
Just like a traditional single-family home, you can hire people to take care of your Airbnb rental and your guests. It’s just like running a hotel where you’ll hire people to clean, change the bedding, and restock the pantry and refrigerator between guests.
You can also hire a property manager to handle all of your repairs and maintenance, which makes running a tiny home Airbnb even easier. For instance, Round Rock property management company, Green Residential, handles all property repairs for their clients, whether they own a tiny home or a standard property.
Being able to hire out all the big tasks makes it easier to run a profitable Airbnb rental business.
- Property taxes are lower
The property taxes for a tiny home are much lower than for a typical home. In some states, like Washington, tiny homes of a certain size are exempt from property taxes all together. Obviously, the fewer taxes you have to pay, the more profit you will keep.
Nothing kills rental profitability like property taxes. No matter what you do, they will continue to rise. Sure, they rise when your property value rises, but you aren’t going to profit from that higher property value until you sell your home. Even if you do sell many years in the future, you will have paid so much in property taxes that it won’t be a true profit.
In some cities, property taxes have doubled in recent years. In fact, some people pay $10,000 per year or more. Tiny homes offer a way around paying high property taxes, which is a big reason people are investing in tiny home Airbnb properties.
- People love small, cute rentals
The best part about a tiny home is often its size. Most tiny homes are between 200 and 500 square feet, but they can be a little bigger, especially when they have multiple stories.
People like small, cute Airbnb rentals. For the most part, they’re probably not going to spend too much time in the house, and they just need a nice place to sleep while they visit the area. For short-term rentals, a small space can actually be someone’s ideal getaway.
It’s easy to decorate a small space to make it feel cozy. You can create a farmhouse feel, use fake plants to make it feel more green, or go with a boho or shabby chic style. It really doesn’t matter what style you choose because people tend to like all different types of décor as long as it’s cute and cozy.
- Utility costs are lower
If you rent out a large home through Airbnb, there’s no telling how much your guests will run up the electricity bill. With a tiny home, your guests won’t be able to run up the bill that much. There won’t be many appliances to draw power in the first place, and tiny homes are typically more energy efficient. You can also install a propane-powered stove to save even more on electricity.
Tiny homes make excellent Airbnb rentals
Whether you’ve been renting on Airbnb for a while or you’re just thinking about it, consider investing in tiny homes to minimize your responsibilities and maximize your profits.
I am Very Enthusiastic about Writing Tech, Smart Phones, Products Reviews, Offers, and deals. I have been writing on tricks5.com since 2015.
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