Building a Tiny House for Rental on Airbnb

Tiny houses are “too cute to ignore,” and — thanks in large part to all the
photos and TV shows — have become an increasingly large blip on state
and local regulatory radars.

From a Long-Term Perspective

While AirBnB seems an option, many areas are taking an increasingly
stringent stand against those that list spaces on the short-term rental
site. Others, like the county we live in (Chesterfield, Virginia) state that
they are actively collecting names of those offering space for rent in our
region.

For now, it seems folks may just receive an official “knock on their door”
or a strongly worded Cease and Desist citation. In the future, however,
fines may be imposed inline with more stringent regulatory restrictions
for use of a residential property as a commercial revenue stream.

People Don’t Really “Live” in a Short-Term Rental

Remember, a dwelling unit is generally defined by three things:
A place to eat, sleep, and go potty!

You’re likely to find that building any kind of structure with a
“permanent foundation” on your premises is probably bound by local
building codes, zoning ordinances, and a preemptive planning process.
While “tiny houses” currently lack definition in the International
Residential Code (IRC) and most state codes (like Virginia’s Uniform
Statewide Building Codes), that day is coming.

Further, while it seems convenient to classify a tiny house on wheels
(THOW) as a home-built RV, and this is a route commonly used as a
convenient exclusion, proper planning and inspections are generally
required for building on a permanent foundation, and RVs are not
allowed to be used as a domicile in most localities.

Again, big change for tiny houses is right down the road.

But Others Are “Going Tiny”

While it’s true you might find articles about local tiny housers living off
grid and below-the-radar, maybe even some local THOW rentals on
AirBnB, this doesn’t make it legal.

As a professional architectural designer, I am at odds with seemingly
over-engineered restrictions and commercial classifications that inhibit
personal freedom and new business development (thus endeth my
sermon), remember that these codes were primarily developed and
remain instituted for public safety reasons.

The quandary that currently exists is that most folks are motivated not
so much by the cute aesthetic of a tiny house, but by well meaning
financial purposes, such as:

-Elect for an affordable answer to basic housing needs
-Provide flexibility for moving their home for future employment
-Lowering monthly expenses to pay down college loans
-Get out from an “underwater” mortgage after a major life event
-Become debt-free, mortgage free, and save for retirement
-To leverage their property as an income producing asset.

From a social shift perspective, and my personal point of view, all of
these are laudable goals with seemingly reasonable and responsible
objectives. But that doesn’t make it “right” in the eyes of policy makers
and law enforcement officials. Sad, but true.

What if I Still Want to Build a THOW?

First off it’s not my place to judge, and I recommend exercising great
caution in your decision making for any form of building project —
especially a DIY tiny house on wheels (THOW)!

If you have a house on a property, and aren’t sleeping on the street or
“couch surfing” with friends, you should carefully consider the pros-n-
cons of building a tiny house and placing it on your existing property.
Whether a pre-built and purchased shed placed on your property, a
small building on a simple pier foundation, or even a “tiny house” on
wheels parked in a secluded spot, all are likely governed by some code
or clause.

And, if you’re looking at this for revenue producing potential, you’re
actually on the cusp of making a business decision. Be sure to look at
tiny house rentals from a commercial perspective including building
codes, zoning ordinances, liability insurance, and every other angle
imaginable. Start a list and begin thinking as if you’re going to have to
defend yourself in court over your decision. Be certain to cover your
precious assets.

There are some serious repercussions to “cracking the code” when
building a tiny house.

Know your rights and limitations up-front!

Well How Can I Build a Legal Tiny House?

Well… I cannot tell you exactly what to do in your locale, only strongly
suggest that you:

1. Seek viability of building an accessory dwelling unit “to code” in
   your city, county, or rural area
2. Check local zoning and building codes up-front for minimum size,
   setbacks, and RV habitation
3. Contact your local government regarding options for renting any
   existing dwelling, part of the existing dwelling (sublet room, granny
   flat, efficiency suite)
4. Search for articles about a shift in accessibility of short-term
   rentals via AirBnB (read: crackdown) in many areas of the country
   (especially your own)
5. Seriously weigh your cost/benefit against risk/reward for your
   specific scenario (especially if you plan to electively forego prior
   approval)
   To see what happens if you take the “beg for forgiveness” route, I
   suggest you look up the Brown’s tiny house case in Chesterfield, Virginia
   (see our post on The Risk of Building an Unapproved Tiny House).

Spoiler Alert: They’re still living in “the hole” (a substandard below-
grade apartment).

Change on the Horizon

While this article might paint a doomsday scenario that casts a cloud
over your your soft-focused tiny house dreams, imagine being in the
role of a burgeoning business that’s on the cusp of success as all of this
comes down.

Rather than “skip and go naked,” we too have had to address the harsh
reality, and consider our options. Rather than snub our noses at state
and local governments, we’ve elected to work with them from an
advocacy perspective and then build our business on a more firmly legal
foundation than what currently exists.

While this long-view may be the longer road, and probably less fruitful
short-term path, rest assured that we will share our honest opinion with
you rather than paint a rosy picture and leave you “homeless in a tiny
house.”

Here’s hoping we all find ways to LEGALLY…