Tiny House Land Rental – What Landowners Need To Know

So you’ve heard about the growing tiny house movement and you’re interested in being involved in the tiny house land rental scene.

You’ve got a bit of space in your yard you’d be happy to share.

You’d love some extra cash every week for doing nothing. Maybe you like the idea of having someone else nearby or a bit of extra security for your property, or maybe you’re just a true blue Aussie who’s happy to help a fellow citizen achieve their tiny dreams. 

Whatever has bought you here, welcome! 

If you’re considering renting your land out, you may have questions about how it all works. We’ll do our best to answer those here. 

How much land/space do you need to have available? 

There really isn’t a set amount. 

Some tiny house dwellers will happily park their tiny house in a little nook or cranny quite close to an existing house whilst others will want privacy and space for things like decking and veggie gardens. Some will value paddocks of land without another house in sight. 

Essentially, if you have the space for the house to fit (most houses are around 7/8m long and 2.5m wide but some are much smaller/bigger) you have a potential tiny house parking spot. Anything beyond that just makes your land more attractive to the right renter. 

What’s the going rate for tiny house land rental?

You’re going to see an emerging theme as you read through these Q&As and it is this — There is no set amount. 

The weekly rental amount that tiny house dwellers pay to landowners varies A LOT.

Given these transactions are done privately and often under the raider it’s hard to provide a definitive answer to what is a reasonable/average amount to charge and ultimately you and the tiny homeowner need to agree on what you both think is reasonable however here are some things to consider in coming to an agreed amount:

Cost

$100/week seems to be the going rate in a lot of cases however we have heard of weekly tiny house rental as low as $50/week and as high as $250/week. $100/week is an extra $5k in your pocket every year. The initial setup can take some thought and work but once it’s done, you’ve got an ongoing source of passive income with no extra effort required.

Location

Location! Location! Location! As in normal house/land rental, the location of your land can impact its appeal and perceived value for tiny homeowners. If you can offer a parking spot that’s right on the coast for example, or quite close to a major city you may be able to charge more premium rental rates.

Supply and Demand

If your area has a lot of lands to spare then a tiny homeowner will not be willing to pay as much for a tiny house parking spot as they could just go to your neighbours instead and find a lower rental rate. 

Provision of utilities

Some tiny houses are completely self-sufficient (off-grid) whilst others require access to mains power and water. (Generally, they will have LPG gas so do not connect to mains gas). A parking spot that has these things available is often considered to be worth more than one that does not.

Size

Size of the space being offered. How much land you’re offering for rent can also impact what you charge. 

How do utilities work? 

Utilities are sometimes included within the rental amounts mentioned above (ie $100/week) and sometimes agreed upon separately. Average usage for one individual in a tiny house for both power and water combined is around $12/week. If there is more than one person living in the house then water usage is likely to increase whereas power is likely to stay the same.

If the house is heated by an electric heater this can bump costs up more than if it’s heated with gas or wood fire. In some cases, tiny homeowners will pay a flat agreed-upon fee for utilities each week whereas in others they will take steps to measure their usage on an ongoing basis and will contribute to each bill as it comes. 

What is required in a tiny house parking spot?

Accessibility. The tiny house must be able to access your parking spot. There needs to be a clear driveable route to the land you’re offering for rent. You may need to trim overhanging branches that could scratch the tiny house or prevent it from being moved through. 

You need to consider if there are any existing building structures that could prevent a tiny house from gaining access to the parking spot. (For example, maybe your backyard is accessed through a carport and the carport is too low for a tiny house to get through). Another thing to consider is that sometimes old-school phone lines may traverse your driveway and need to be managed if a tiny house is to come through.

Beyond the considerations of your own property, can the tiny house safely be transported from its current location to your property? Ie. Are the roads wide enough for a tiny house? Are there any sections of the road where low hanging power lines would cause issues for a tiny?

These factors are more things that the tiny house owner will need to consider and navigate (and they can often get assistance from whoever they seek out to help transport the tiny) however it’s worth considering upfront as it could help alleviate any issues down the track.

Provision of utilities. As mentioned above, some tiny houses will want access to mains power and water as part of the rental arrangement.

Finally, a flat area of land to park the tiny house upon. 

What are the legalities of tiny house living and leasing?

Whilst the tiny house movement continues to grow and evolve here in Australia it is still a relatively new/small movement and legislation has not yet been created to govern this area. Currently, tiny houses on wheels are considered “caravans” and are therefore subject to legislation around caravans/camping. In many areas, this means there are limitations on how long someone can legally live in a tiny house/caravan, even on private land.

For this reason, many tiny home dwellers choose to live under the radar. In most cases, councils do not actively seek to find and/or police tiny home dwellers however they do have a responsibility to investigate if they receive complaints from neighbours.

Generally, as long as the tiny homeowner is living responsibly and not causing any issues for neighbours then hopefully everyone stays happy however it is a risk of tiny home living that a tiny homeowner may be asked to move on, and in this instance, you would lose your tenant. This situation is something that the Australian Tiny House Association is actively seeking to change. You can keep up to date with their work and the evolving situation at Australian Tiny House Association. 

Something else you may want to consider doing is contacting your insurance company to find out if the public liability cover that’s included as part of most home insurance policies will extend to include having someone living on your land. Potentially, if it does not, your insurance company/broker may offer for you to add a landlord’s liability cover into your policy. It may also be worth enquiring as to whether or not having someone else living on your property impacts any other part of your insurance policy.

You could also consider taking out separate public liability insurance. Any additional charges associated with these things could potentially be passed onto your tenant as part of the rental agreement. You could also ask/insist that your tenant has public liability cover in their own name to help ensure you’re covered in the event of any accidents.

In terms of the insurance of the tiny house itself, this is something the tiny homeowner can organise separately if they wish to. We have an article on tiny house insurance here.

Finally, it is certainly wise to have some kind of written agreement in place between yourself as the landowner, and the tiny house owner. They could include things like weekly rent, any conditions of the rent (such as clear definitions of what land they’re getting access to and any conditions around maintaining that land), how utilities are handled, the period of the lease (it can be renewed upon expiry, just like a normal rental agreement, if it suits both parties) etc. You may also want to take a bond in case there’s any kind of damage to your land and/or they leave behind rubbish upon leaving etc. We sell an example land rental agreement as part of our land rental guide here.

What else needs to be considered?

Most tiny houses come equipped with a composting toilet and the waste from this is something the tiny owner needs to dispose of in a safe and sustainable way. In addition, they need to have a way to handle the water runoff from their house. Setting such systems up will often require some upfront costs. These costs are most often considered the responsibility of the tiny homeowner although this is not set in stone and worth discussing prior to any agreements being entered into.

Having proper waste management systems in place is important from both a health point of view and a keeping the peace with the neighbours’ points of view! Ask any potential renters how they plan to handle such things prior to agreeing to let them rent your spot. 

How do you find tiny house owners looking for land rental?

There are a number of ways you can potentially connect up with tiny homeowners looking for a parking spot. One way is to jump on social media (Facebook is great for this) and join the multitude of groups dedicated to tiny houses here in Aus. You can post pictures of your land + details of your location, the land available, utilities available etc and hopefully, you’ll find a match. 

You can also list your property in our Tiny House Land Rental Database here. Note you can just list your street/general area you don’t have to enter your full address into the address area.

Conclusion

There’s surprisingly a lot to consider when it comes to renting your land out to a tiny homeowner, more than most people realise upfront. Historically matchups between landowners and tiny house owners have been more between friends and family members and agreements may have been more casual and not inclusive of all the things we’ve mentioned above.

As the tiny house movement continues to grow and more and more people seek out tiny house land rental, these agreements will increasingly be made between parties that don’t necessarily have an existing relationship and that may be where it’s more important to consider all the things we’ve mentioned above.

Whilst it can take some initial planning up front to navigate such an arrangement, once it’s in place, you can potentially earn an ongoing income every week for years to come, with no additional effort on your part, and that’s appealing!

If you have questions, or suggestions for other landowners, please post your comments below. This is an evolving space and we’re all learning together. 

Click here to list in our Tiny House Land Rental Database!

More Tiny Houses Aus Posts

Ready to read more about having a tiny house? These posts explore things from the tiny house owners perspective!

1. Take a look at our 7 savvy search tips to help you find land rental for your tiny house!
2. Tiny house living in Australia – Is it for you? Click to find out.
3. Here’s what you need to know about what to look for in the ultimate tiny house parking spot!