Looking to gain a passive income by adding a tiny home or granny flat to your backyard or holiday section? If you have a section with land to burn, investing in a second dwelling is a great way to do so. Pop a tiny home in your backyard, hook it up to council amenities or set it free and off the grid, and bring in some tenants or holiday-seekers, and you’ve got a cash cow! If this is starting to sound like a good idea (it is), we’ve put together a few ideas for you to make money from having a second dwelling in your section. Bring in the eco-friendly tourists with an off-grid tiny home experience, entice some long-term renters, or set up an office space in the backyard. The options with a tiny home are plenty, and so is the cash!
Money-Making Ideas for Your Tiny Home
To make money from a tiny home is easy. The hard part is to decide which way to do it! Here are a couple of ways you can start earning money from a second dwelling on your property.
Make It a Tiny Holiday Home!
Tiny homes are becoming popular vacation accommodation. They lend themselves to short-term stayers with their often cute and curated aesthetic being great for those holiday snaps. To make the most of your tiny holiday home, try to design it with a particular niche in mind through look and location. For example, if you’re located in the countryside, incorporate a rustic edge to your décor. Another great tip is to take your tiny home off-grid. It’s an experience many are starting to look for with the rising popularity of eco-tourism!
Secure Long-Term Renters for Financial Stability
If having different people come in and out of your time home seems a little overwhelming, how about attracting long-term renters? Get secure tenants to sign a long-term lease, so income is guaranteed. Given it’s a second dwelling, most likely in your backyard, it makes being a functioning landlord easier. Plus, you might even make some friends along the way!
How-tos and Checklists for Making Money With a Second Dwelling
Making income off a second dwelling is a great idea, but it needs some thought before it can be a viable (and legal) operation. Here are a few things to check before jumping headfirst into your small but fruitful money-making venture.
Check Local Council Rules
The first point of call when building and renting a second dwelling is to check local council regulations. Two properties on a section with one title mean different sets of legislation apply, and they change from zone to zone. Start by checking the building regulations in your area regarding dwellings with their own toilets and kitchens. Also, check the rules for hooking up your tiny home or granny flat to local utilities. There are often hidden clauses that can catch you out when navigating council rules.
Be Compliant With Landlord & Tenancy Regulations
There are several rules surrounding being a landlord. Ensure you check the tenancy NZ website and implement any mandatory steps before you let tenants move in. Legal regulations such as the Healthy Homes Act means landlords must provide a source of heating, insulation, and ventilation. They also have many rules surrounding interaction with tenants, so make sure you’ve read the rules from top to bottom!
List Your Tiny Home on a Holiday Home Website
The best way to turn your second dwelling into a holiday home is by listing it on a website such as Air BnB or Book a Bach. Each website will have a list of terms and conditions. Read them to make sure you want to advertise and partner with them. It might be a second dwelling, but it’s still your hard-earned property! Do your due diligence on each website to ensure their rules suit you, especially check competitors’ pricing. This way you will know where to position yourself in the market and entice those happy holidaymakers.
Enlist the Help of Social Media
Social media might not be a direct way of making money from your tiny home, but it can help. Take a look at tiny homes on Pinterest or Instagram and you’ll be greeted with cute, beautifully designed little houses to inspire vacationers. It’s a great way to advertise without a huge cost. You just need to know your way around a camera, an editing board, and a social media algorithm.
Get Started With a Second Dwelling From Tiny Homes HQ
Just because it’s a second dwelling doesn’t mean it has to be second-rate! Tiny homes HQ has a range of granny flats, cabins, and tiny homes available to suit your property. Whether you’re after a fully-fledged flat or a mini holiday home in New Zealand’s tourist paradise, Tiny Homes HQ can help you get your project underway to create the best quality dwelling at an affordable price!