Miniature Living: What Does it Take to Become a Tiny Home Owner?

A tiny home, as its name suggests, is a very small house intended for permanent residential living. According to the American Tiny House Association, tiny homes typically range from 100 to 400 square feet in size – much smaller than their single-family home counterparts. In a 2015 survey, the United States Census Bureau found that 2,467 square feet was the median size of a single-family home. 

In recent years, tiny homes have exploded in popularity – communities specific to these little abodes are nearing the hundreds in the United States. And with television shows, such as “Tiny House, Big Living” describing tiny home ownership as a movement, it’s clear they’re more than just a place to live – they facilitate a way of life. But what’s behind the rise to downsize? Some of the reasons people are opting to go small include:

•          Less financial responsibility. The Tiny Life reported the average cost of owning a single-family home over a span of 30 years is a steep $1,073,000, which includes the purchase price, taxes and repairs. In contrast, the cost to build or purchase a tiny home usually ranges between $10,000 and $80,000, enabling 68% of tiny home dwellers to live mortgage free.
  
•          A simplified lifestyle. Since 400 square feet isn’t a lot of space, tiny living requires you to bid farewell to the majority of your belongings and only keep what you need. While purging more than half of what you own sounds impossible, many tiny home owners have reported that living in a minimalistic, clutter-free environment significantly lowers stress levels.
  

Thinking of taking the leap into tiny living? Since the process is different from becoming a traditional homeowner, it will require careful planning. Follow these tips to help streamline the process.

Where can I put my tiny home?

While a tiny home has benefits, finding a place to build or place it can be challenging. Zoning laws in many areas have restrictions about the size and location of permanent living structures, which can complicate the process.

Homes in many single-family residential neighborhoods are required to be at least 1,000 square feet in size, making tiny homes illegal in most areas. If your tiny home is on wheels, staying at an RV park wouldn’t necessarily be an option, since many limit how long guests can stay. And even if you own property where zoning restrictions do not apply, getting utilities for your tiny home may not be easy. For example, if your property is in a rural area, you’ll be responsible for the labor and costs of laying pipe and installing a pump and meter, which can be tedious and expensive.

However, despite the limitations, finding a place to settle down is possible. If you want to live the tiny life but don’t know where to put your home, consider the following options:

•          Share land with family or a friend. If you know someone who owns property, ask if they’ll allow you to build your tiny home on it. In this case, your home will be considered an accessory dwelling unit – a habitable living unit that shares property with a primary structure, according to the Federal Housing Administration.
  
•          Move to a tiny home community. With the growing popularity of tiny homes, many neighborhoods are popping up across the country that welcome these micro-houses. The top five tiny-home-friendly states – containing the greatest number of tiny home communities and flexible zoning laws – include California, Oregon, Texas, North Carolina and Florida.
  
•          Request a zoning variance. Just as one Minnesota couple did, you have the option to meet with your local government, describe your situation and request to be exempt from zoning restrictions. The process could take several months, but if your request is granted, you could legally put your tiny home on land that would otherwise not allow it.
  

Protect your pint-sized property

Although tiny homes cost a fraction of the price in comparison to a traditional single-family home, it’s still important to protect them with insurance. But, since a tiny home isn’t a traditional residence, it will require special coverage.

The size of tiny homes prevents them from meeting standard building codes, which means they aren’t eligible to be insured with a standard homeowners policy. This policy typically covers the structure of your home in the event of weather-related damage or vandalism, replacement costs of stolen belongings and can help with certain medical expenses if someone gets injured on your property. And even if your miniature house has wheels, many providers won’t insure a tiny home as an RV unless it has been purchased from a certified Recreational Vehicle Industry Association manufacturer.

However, protection is available for your little home. There are a handful of providers that specifically insure these alternative living structures, but many will require your tiny home to meet certain guidelines to be eligible, which vary based on insurer.

Do your research before downsizing

While tiny homes offer an enticing sense of financial freedom and a simple lifestyle, they require dedication on the journey to ownership.

Before you choose to design or purchase the tiny home of your dreams, have a plan in mind. Research zoning laws in your area and make sure your home will be insurable so you can enjoy – and make the most of – your new dwelling.

Shelly White writes for NationwideInsurance.com and Quotes.Safeco.com, online resources for homeowners and drivers across the country.