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How to Start a Tiny House Hotel Business

What is a tiny house hotel?

A tiny house hotel can be a great spot for campgrounds, wedding venues, retreat venues, and much more. The possibilities are endless for what a tiny house hotel can provide. Tiny house hotels offer a more intimate experience with their environment than traditional hotels for the same price.

tiny house woodburned siding tiny home arcadia b&b micro manufacturing

Arcadia Tiny House at Woodlife Ranch

Tiny house hotels can usually range from $125-$300 per night. Tiny house hotels contain houses under 400 square feet, are often located in scenic places, and offer guests the chance to explore the outdoors or local attractions. Many tiny house hotels offer the features of a traditional hotel: they can sleep 5+ people, have wifi/cable, have an outdoor deck/grill, and have a full bathroom/kitchen. In addition, they can offer unforgettable experiences for weddings, dining, business retreats, and family reunions.  For some examples of tiny house hotels, check out these tiny house hotels across America.

Tiny house hotels usually have the customers book their stay online and then on the day of their arrival the customer will receive a code in order to get into the tiny house. The days of traditional check in are in the past!

In addition, tiny house hotels can be formed on a smaller level. As long as you have land and one tiny house, then you can set up a cozy bread and breakfast. Read our blog post on how to make money on your personal tiny house for more information. 

Choosing the Right Tiny Houses For Your Hotel

When determining the tiny house you want to use for your hotel, you want to make sure that it is fully accommodating to your customer. Will your customers be able to sleep their entire family? Is there enough built in storage for food and clothes? Does the design allow for your customers to feel connected to the scenic outdoors? Is their something unique and memorable about your hotel?

The Arcadia Tiny House

One of the great things about tiny house hotels is that it’s very easy to expand your capacity. As long as there is land and electricity/water available, tiny house hotels can add more units whenever they wish.

Attracting Tiny House Hotel Customers

The location of your tiny house hotel may be your biggest selling point. Many customers decide to stay in a tiny house because they’re looking to disconnect and spend time outdoors, so by choosing a location that is close to activities like hiking or swimming you ensure that your customers will have a great time while they’re on their vacation. In addition, customers may want to check out some cultural attractions while on their vacation. Locations that allow customers to spend time outdoors and are nearby to cultural attractions are optimal locations.

tiny home investment additional income New England

The Hudson Tiny House

Most tiny house hotels allow customers to book through their website and through websites like AirBnB, Try it Tiny, VRBO, and Homeaway. When creating listings for AirBnB, it’s important to showcase what makes your hotel stand out. If your tiny house has a beautiful deck area with a grill, showcase it! Allow potential customers to envision what their time at your hotel would be like through pictures. In addition, social media is another tool to attract customers. Because lifestyle content is integral to social media, a tiny house hotel can attract a lot of attention on social media platforms. Social media is a great tool to garner interest in your tiny house hotel.

Finding Land

Figuring out where to develop a tiny house hotel can get tricky as you must make sure that local building codes and laws allow tiny houses.

Zoning Laws

After you’ve looked over the zoning and, if applicable, building codes for your specific zone of your town, you may need to ask the town permission to have a tiny house on your property. Most towns don’t already have tiny houses written into their zoning or building codes.  If this is the case, don’t be discouraged: it doesn’t mean you can’t do it, it just means you’ll have to introduce the concept to the zoning board.  In this blogger’s experience, zoning boards are made up of passionate people who want to find housing solutions for their towns.  With tiny house TV shows and news stories all but taking over television networks, no doubt at least a couple of the folks on your town’s zoning board will already have an idea of what tiny houses are.  They’ll let you know whether you need a special permit to have a tiny house on your property, and if so, guide you through the process.

The Hoosic Tiny House

Getting Utilities

For electricity, the cheapest and easiest option is to plug into an existing power source.  Others choose to power their homes with solar power.  Click here to learn more about solar power for tiny houses.

For fresh water and waste water, city water and sewer are one option; pieces of property in less dense locations that don’t have city water and sewer will need to use a well and septic systems.

If the land already has electricity and water hookups, you won’t need to worry about having those put in.  Generally, although not always, it’s less expensive in the end to buy land that already has utilities than buying land without and then paying to have them installed.

For more information on this topic, read our blog post on the things to know before buying land for your tiny house for more information.

The Silver Lake Tiny House

How do I make it happen?

With determination, anyone can open their tiny house hotel. You have many options for securing funding. Read these 10 ways to get funding for your business and 6 tips for securing investments. As previously mentioned, a great aspect of tiny house hotels is the ability to grow your business whenever you please.

If you have any questions about developing a tiny house hotel, please contact us! We have experience in mass producing tiny houses for hotels.

Creating an Original Tiny House Design vs. Purchasing a Pre-Designed Tiny House

Should You Purchase A Pre-Designed Tiny House or Design It Yourself?

At B&B Tiny Houses, we are often asked if a prospective tiny home owner should buy a custom tiny house or choose from our catalog of tiny house designs. Most of our clients will ultimately decide that they want to customize an existing tiny house design for the reasons below.

Pre-Designed Tiny Houses

Because we have 9 models of pre-designed tiny houses, most prospective tiny house owners will find a plan that will work for them. With this option, B&B customers will get to choose the finishes on their tiny house for no additional cost. This means that clients will have the option of picking the finishes for the interior and exterior of their tiny home: including the roofing, ceilings, walls, fixtures, and floors. The customization process of the pre-designed tiny homes allows owners to add their own style to their tiny house. The pre-designed tiny houses also allow clients the option of changing the blueprint–i.e. adding an extra closet or rearranging kitchen appliances. Read more about our blueprint changes fee.

Perfect for weekend vacationers, the Prospect has a beautiful observatory bedroom with large sliding doors on three sides.

The Sentinel is designed for someone who wants to live tiny but won’t compromise on kitchen space. The kitchen has a full size fridge, oven, and sink, and ample cabinets.

 

Original Tiny House Designs

Customers also have the option of working with B&B’s design team to create an entirely original design.  Original tiny house designs allow you to create the exact tiny home that you’re envisioning, but due to economies of scalei.e. custom houses taking longer to build due to the fact that each one is unique and not able to be mass produced— this option can be quite costly. In addition, with a custom house, there is an extra fee to design the sketches of the home and create an estimate. Read more on original tiny house design fees. Custom plans and builds come at a substantial increase in cost and build time, but they also allow those that are willing to pay more to receive a beautiful tiny house designed for their exact needs and lifestyle. 

Clients can give our designers sketches of their dream home and see their ideas come to life.

 

Ready to begin your tiny house buying process? Fill out the form below to get in touch with us.

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Are You Financially Ready To Buy A Tiny House? 4 Ways to Get the Best Loan for Your Tiny House

Fortunately, there are multiple ways to get financing and save up for your tiny house, whether it’s a turnkey RVIA certified Tiny House on Wheels or a DIY shell or frame.

Choosing the Best Tiny House for You

Tiny Houses on Wheels Vs. Tiny or Small Houses on Foundations

Before we talk about the best way to finance your tiny house, let’s talk about the different types of tiny houses. Please note that securing finance for your tiny house will have different processes depending upon if your tiny house is on wheels or on a foundation. Permanently-affixed tiny houses will be able to get traditional construction loans which can include site work. For this article, we will be focusing on financing a tiny house on wheels.

tiny home brodie mobile office studio The Brodie Mobile Office photographed by Steph Rapsiarda

Tiny House on Wheels: Price Difference Between Original or Off-The-Shelf Design

Building a tiny house of your original design through B&B allows you to create the exact tiny house that you’re envisioning, but due to economies of scalei.e. custom houses taking longer to build due to the fact that each one is unique and not able to be mass produced— this option can be quite costly. The second option is to buy a pre-designed tiny house. There is a wide variety of options and at B&B we will allow you to customize materials, colors, and appliances (click here for all of the customizable options at B&B). This is a great option for those that want to stay on budget and still put their personal touch on their tiny house.

tiny home new england tiny shellDIY Tiny House Frame

Build Your Own Tiny House Using a Shell or Frame Kit

The third option is to buy a wood-framed tiny house shell. A tiny house shell has the exterior complete and the interior incomplete. Shells can have windows, doors, plumbing, and electric complete or incomplete depending upon your needs and budget. Lastly, you have the option to buy a steel frame kit for your tiny house. This option ensures that you have a professionally built frame and allows you to customize your tiny house how you please; however, we do not recommend DIY options for anyone that does not have construction experience.  The shell and steel frame option are not certified by RVIA, meaning that it would be more difficult to get a loan. Both of these last two options can be a great choice for someone that wants to complete their tiny house by themselves or wants to self-finance their own tiny house in stages. The RVIA cannot certify shell or frame kit options because the tiny house will not have been finished in a RVIA certified location; however, it may be possible to get a personal loan for the shell or frame kit.  

If you are DIYing your tiny house, consider all the costs associated with building, not just the materials cost.

Are You Financially Ready To Own A Tiny House?

Consider Your Total Tiny House Cost– Not Just Monthly Loan Payments

Once you have decided on the best tiny house option for you, you will have a better idea of the loan you will need.  Because B&B is RVIA certified, you would be qualified to apply for an RV loan for any of our turnkey tiny houses on wheels. When determining your tiny house budget, you will also need to consider monthly costs such as electricity, maintenance, insurance, and where you will be keeping your tiny house.

Read our article on the all-in costs of a tiny house versus a traditional house. 

In addition, if you need site work–grading, clearing trees, adding a pad–or infrastructure–fresh water, waste water, and power–you’ll need to consider these costs in your total budget. You will want to estimate these costs before you decide the amount of the loan you’re willing to take out. Just like a home mortgage, your income, credit score, market factors, and down payment will all affect the terms of your loan. After you’re pre-approved, B&B will schedule a design session with you in order to get your final quote.  

tiny home brodie mobile office studio

 The Brodie Mobile Office photographed by Steph Rapsiarda

4 Ways to Get the Best Loan for Your Tiny House

Improve Your Credit Score 

Improving your credit score will help you lower your monthly payment. This is because the bank views those with higher credit scores as being more reliable and thus will give them better rates and bigger loans.  Here are 11 ways to improve your credit score.

Save for Your Down Payment

The more that you save for your down payment, then the lower your monthly payment will be, so start adding to your tiny house piggy bank!

Choose the Best Tiny House Type For You, then Choose Your Floor Plan

After you’ve chosen the best type of tiny house for your needs, whether it’s a DIY frame, shell, or a turnkey tiny house that’s move-in ready (and RVIA-certified), you’ll be able to get an estimate on the floor plan you want and start researching your loan options.

Shop Around

It’s a good idea to contact a few different financial institutions to get the best deal for you.  Check out all your tiny house financing options here including getting a Tiny House Loan through Adams Community Bank, an RV loan through Lightstream, and a personal loan through your own bank or credit union.

How to Make Money by Renting Out Your Tiny Home

With New England’s quintessential towns and breathtaking scenery, it’s no surprise that many of our tiny home owners use the area as a second home for weekend retreats. Because these homes often sit vacant, owners will often rent out their tiny homes in order to share the tiny home lifestyle with newcomers and make additional income. The best part of renting your tiny house to others is that it’s easier than you would think!

How to Earn Extra Income with Your Tiny Home

If you’re thinking about turning your tiny home into an investment, then you’re surely asking yourself a lot of questions. How do I pick the best location? How do I find customers and manage my property? How do I ensure I make a profit? Don’t fret, we’ve got you covered.

Picking the Best Location

When determining where to place your tiny home, think about your future customers and what their needs are. Are the customers you’re trying to reach looking for a place to stay while they hike New England’s serene mountains or are they seeking the comfort of being close to some of New England’s most memorable towns? The best way to figure this out is through research and talking with members of the community that you’re interested in. The local inhabitants will know the most about the types of tourists that their town receives. In addition, growing your network and connections with the local community is a great way to help spread the word about your tiny home.

In order to find land after you already have an area in mind, you can use websites like Zillow or Landwatch to see available listings, but it may be worth it to contact a real estate agent. Like the local inhabitants, real estate agents will be able to give you the inside scoop of particular areas and tell you which areas they think will make the most lucrative investment.

But is it legal?

Unfortunately, there is no clear-cut answer to this question as it depends on the town’s zoning bylaws. The good news is that it is relatively easy to find out if you can have a tiny home in a certain area by checking the town’s online building code or by simply giving the town hall a call. Click here to learn more about finding out where it’s legal to have tiny homes. tiny home kitchen new england

Finding Customers for your Tiny Home

Get Connected and Engage

Just as it is important to get connected with the local community when finding a property, it’s as equally important when attracting customers. Word of mouth is a great way to attract customers. Another great way to become connected is by establishing partnerships with local businesses. For example, you may establish a partnership with a local outdoors shop where you agree to leave coupons for the shop on the bulletin board in your tiny home for guests to see in exchange for a standup ad poster in their store. Also, use social media to develop interest in your tiny homes. Encourage guests to share pictures of their experience in your tiny home. Allow others to see the magnificent time past customers have had in your tiny home!

Use Third Party Platforms

Websites like Airbnb, VRBO, FlipKey, and Homeaway are another great way to find potential customers. Try It Tiny is a tiny house-specific website for renters, landowners, and tiny house owners looking to rent out their houses.  What’s great about these platforms is that you don’t need to do anything besides build your online profile; the customers will come directly to you!

tiny homes bedroom b&b micromanufacturing

Maximizing Your Profit

It’s apparent that the quality and location of your tiny home are some of the driving factors that determine the price you are able to charge customers, but there are even more factors affecting the price and therefore interest of customers in your property. Below are some of the other most important factors.

Amenities and Competition

Amenities such as the size of the kitchen, wifi connectivity, or an outdoor sports court help determine the price that you are able to charge. In addition, it is important to analyze your competition to see what they offer and at what price. It is also just as important to make sure that you offer something that your competition does not–what makes your tiny home extra special? Is it the views from the property, the outdoor grilling area, or the luxurious fixtures?

Make Hospitality a Priority

Sites like Airbnb allow customers to give reviews to their hosts. These ratings are out of five stars and visible to all prospective customers. Low ratings will certainly deter prospective clients; likewise, high ratings with personalized experiences allow you to build trust with future customers. High ratings with personalized experiences are made through experiences that humanize the lodging experience. What will your customer remember about their experience? Was it your useful advice of things to do in the area, the complimentary welcome basket with a handwritten note, or your high level of responsiveness to your guests questions? Click here to learn more about how to be the best AirBnB host. 

tiny home investment additional income New England

Becoming an Entrepreneur

Now that you know more about the mechanics behind turning your tiny home into an investment, you’re one step closer to becoming an entrepreneur! Reporting to yourself and being able to make the decisions that impact your investment can be a very exciting opportunity. So, what are you waiting for?

 

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Tiny Guest Cottages for Under $50,000

Backyard Guest Cottages for Under $50,000

Affordable Tiny Houses, Ready To Move In, Are A Great Backyard Solution

Need more space to accommodate your family members, but don’t want to renovate?  Want to have a tiny house in your backyard for guests but can’t get a building permit?  Want to make an extra income by renting out your tiny house but don’t want to invest too much?  Purchase a tiny house on wheels for under $50,000.
Tiny houses on wheels make a great, year-round additional private space that can include everything someone would need in a private home: a bathroom, kitchen, and bedroom, that can be parked in your back yard.  They can be used as guest cottages, short-term or long-term rentals, in-law cottages, starter homes for adult children, or just an extra, quiet space to get away once in a while.

B&B Micro Manufacturing’s turnkey tiny houses under $50,000:

The Hoosic has a queen size sleeping loft with a living room underneath, a full bath and a basic kitchen.  It’s great for someone who likes the tiny lifestyle and is willing to sleep in a loft in order to have more living room space underneath.

The Hudson comes in 20′ and 26′ versions and has a first-floor queen size bed, a full bath and a basic kitchen.  This house is great for someone who doesn’t want to climb a staircase to get to bed.  The 26′ version fits a regular size sofa and small fold-out kitchen table.

The appliances and storage solutions in these houses can be upgraded as you wish, and the colors and materials can be customized to fit your style and budget.  Here is a link to our tiny house customization options.


How Do Backyard Tiny House Utilities Work?  How Are Tiny Houses Attached?

Tiny houses are easy to hook up in back yards.  Simply plug in the included extension cord to power your backyard cottage, and fill the tiny house with a hose.  Wastewater can be pumped directly into your sewer or septic system, or held in a tank until it is ready to be emptied.  More information on how to hook up a tiny house is here.
You can choose to get skirting for your tiny house to cover up the wheels and make it look more permanently-affixed, or build a porch on the front.  You can opt for hurricane anchors to secure the tiny house to the ground in case of inclement weather.
The best part of having a tiny house on wheels is when you move, you can take it with you!

Do I Need a Building Permit for my Tiny House On Wheels?  How Do I Get Permission To Have A Tiny House?

Because B&B Micro Manufacturing is an RVIA-certified member-manufacturer, our tiny houses on wheels are legally considered RVs and can be parked anywhere an RV can be parked.  Tiny houses on wheels do not require a building permit. Some cities will allow short-term stays, or  “camping” in RVs, but not full-time living.   Read more on how to get permission to place a tiny house in your back yard. 

Tour Two of B&B’s Tiny Houses at the Newport Flower Show Tiny House Village, Rosecliff Mansion

newport flower show 2018 tiny house tour

The Newport Flower Show is coming up!

This year’s theme is Cottages: Smart & Small, and @bbmicromanufacturing is proud to be showing off two of our smart, small cottages at the show: the Brodie Mobile Studio and the Stony Ledge Tiny House. Explore the tiny house village, Rosecliff Mansion, and see the events, contests, and gorgeous gardens on the ocean.

Join us June 22-24, 2018 to see all the tiny houses in the Tiny House Village, each with their own garden, and tour Rosecliff Mansion.

Purchase tickets here.

 

 

Tiny House Appendix Q Is Being Considered For Massachusetts’ State Building Code: Here’s How You Can Help

Meeting Addressing Tiny Houses in Massachusetts’ Building Code

Last week on May 8, 2018, the Massachusetts Board of Building Regulations and Standards (BBRS), at its regular monthly meeting, addressed Proposal Number 5-2-2018: “Consider adopting Appendix Q of the International Residential Code pertaining to Tiny Houses.”  The agenda is here; minutes (an official summary of the meeting) should be forthcoming.  Along with Appendix Q, micro-apartments were also addressed.

This meeting was one step in the process of Massachusetts’ adopting the Tiny House Appendix into its building code, following the example of other tiny house pioneering states Idaho, Georgia, and Maine.   The next step after this meeting will be an internal vote within the BBRS (not a public vote), which will take place next month.  Before voting, the BBRS is accepting public comment on Appendix Q: the address is at the bottom of this post.

What is The Tiny House Appendix?

Appendix Q addresses building code standards for small houses on foundations that have already been adopted into the 2018 International Residential Code (IRC), including standards for lofts, stairs, egresses, and ceiling heights.  To be clear, the adoption of the Tiny House Appendix won’t completely legalize tiny houses in Massachusetts– that’s up to each city– but if it is adopted, it will provide a set of building standards for under 400 sq ft homes where they are legalized, and where they aren’t yet legalized, help legitimize tiny homes in the eyes of local building departments.  Appendix Q does not address tiny houses on wheels, as they are currently considered vehicles.

Read the Tiny House Appendix here.

Appendix Q in Massachusetts

Andrew and Gabriella Morrison have been instrumental in writing and getting the Tiny House Appendix adopted into the 2018 IRC: now it’s up to each state, and then each city/town in each state, to adopt it into their specific building code.  Andrew presented at a Massachusetts BBRS meeting, introducing Appendix Q last fall.  Before last week’s follow-up meeting, Andrew said, “The last time I was there, the main question was why should tiny houses get “special treatment”: their own code provisions? I responded that it’s about safety. People are building tiny houses all over the place and with NO oversight. The appendix allows code enforcement to make sure that the tiny houses are built well and to safety standards. It’s about providing healthy, safe housing to millions of people who need it and don’t otherwise have access to it.”

Comments About Tiny Houses from the May 8 Massachusetts BBRS Meeting

Of the tiny house portion of the meeting, Richard Crowley, Chair of the Mass BBRS, said: “There were quite a few people who came to the front to speak. One lady was very animated and she was so cool she made everyone laugh. Very enjoyable speech. I put my two cents in and away we go. I don’t think [there will] be any problem next month getting a positive vote.  FYI if anyone wants to comment they can do so to the attention of Rob Anderson at the BBRS.”

Raines Cohen, a cohousing coach who attended the meeting, said “All speaking in favor but one comment afterwards during the micro homes referenced tiny homes and brought up concerns around disability access standards… Some informed questions, coming from the fire-chiefs head.”

Next Steps To Adopting Appendix Q

Richard Crowley of the Massachusetts BBRS said “the …[board] will meet in June to review all comments and possibly vote on any or all of the proposed regulations.
From there the proposed regulations go to an in-house meeting call BCCC or Building Code Coordinating Council.
From there it comes back to our administrator who forwards it to the governor’s office of administration and finance. They will review it and once reviewed they will either recommended it to the governor for Signature or send it back to our administrator and board to amend whatever issues they find with the language.
So [we’re] looking at a process that can take anywhere from a month to 6 months or more.”
The next Massachusetts BBRS meeting is on June 5, 2018** at 50 Maple St., Milford, MA.

Please Ask Massachusetts to Adopt The Tiny House Appendix!

The BBRS is inviting public comment on the tiny house appendix until June 1, 2018***.  Please write to:

Robert Anderson, Chief of Inspections- Building Division, MA Department of Public Safety

Email: robert.anderson@state.ma.us.

Letters: One Ashburton Place, Boston 02108

 

*The paragraph “Next Steps…” was added on 5/15/2018.

** The original date for the June meeting was June 12; now it is June 5.  

***As of 5/18/18, the comment deadline has changed to June 1.  

B&B Open House: Tour a Tiny House and a Tiny Studio, Eat Cookies, Visit the Museum of Dog!

We are excited to announce we will be opening our tiny houses to the public for tours on May 19 from 1-4pm. In addition to touring the Stony Ledge Tiny House and the Brodie Tiny Office/Guest House/Studio, you will be able to see the new parklet we’ve built for the City of North Adams’ Eagle Street Project, purchase sweets from Mountain Girl Farm (they will have cookies for humans and cookies for canines!) and take a $5 tour of our new neighbor, the Museum of Dog.

The tiny open house will be at Windsor Mill, 121 Union St (Route 2) in North Adams, MA— your GPS will take you to the front entrance, but our tiny houses will be in the lot around the left side of the building on Canal Street, right across from the Museum of Dog.

If you’ll be coming from out of town, round out your day by visiting MASS MoCA down the street, taking a hike at Natural Bridge State Park (Massachusetts)or attend the evening Gala at IS183 Art School of the BerkshiresNorth Adams is a wonderful place to visit!