Presented by Bianca from The Giving Tree Consultancy.
So here is a question that is quite literally my life’s blood. Why would anybody want to rent land or lease land to a tiny home owner? Why? Why would they want to do that? I’m gonna tell you why. Because there are so many reasons!
Reason one. Renting land to a tiny home owner can help the property owner – the person who lives in the main home – have the opportunity to not only increase their wealth, increase an income opportunity or age in place.
Consider the aging population, which is the largest growing age bracket of population in the world. All of the baby boomers are retiring. All of the boomers are retiring and they all will need spaces to go and a lot of them will not be able to stay in their homes.
Now having an additional dwelling unit on their property allows them to either stay in their home or perhaps downsize on their own property. So there are a lot of really unique uses that will really going to come into play here.
Now, if you’re considering on the opposite end, that is an individual who may know the property owner or may not. Maybe it’s not a family member. The idea here is that you can gain an income from this. Usually what we’re looking at for land leasing rates is anywhere between $750 to $950 capped out around hopefully !1200 a month for land leasing.
So, that being said, there are two sides to the coin here. We have land owners who want to – who are giving up – a piece of their property. Who really need to have that additional income. And then we have the tiny home owner who is looking for an affordable housing solution and looking for an alternative kind of lifestyle.
Both of those people have different needs. The property owner wants to make money from this. The majority of the time, the tiny home owner wants to save money from this. So you have kind of conflicting interests at the end of the day – your parking spot or your land leasing scenario might not always be what you deem as affordable or attainable. It has to make sense for the property owner and it has to make sense for you.
More often than not, when you’re mortgaging out a tiny home at around $200,000, you can expect to be paying that mortgage off around the $1500 mark [monthly payments]. And so $1500 plus then potentially 950, now you’re up into rental terms and the current rental market, which for a lot of people is not affordable.
But I’ll be the devil here and I have to tell you that this is not going to be affordable for everyone. It is going to be affordable for a solid amount of people, though, so it’s closer to the pendulum where we need to be in order to obtain ethical obtainable housing.
But this is just one of many solutions that are going to work. A property owner can host a tiny home tenant to enjoy passive income. They can host a tiny home tenant to have that person then help on their property. For example, my husband and I don’t pay any lease fee where we are because we steward the land here and we take care of the property. So that sweat equity is paying itself off.
We paid for the initial infrastructure and hookups but we do not pay a lease fee according to our lease arrangement. You can look at farms, you can look at places that need labour. You can look at potential living on your parents property and helping them age in place. You could look at a ton of different scenarios in which this makes sense and the reason why we need this is because we need the world to think differently, and we need solutions, and this is a really, really desirable solution.
So #1, if you know anybody who has land willing to host a tiny home tenant, get in touch with Tiny Homes in Canada, get in touch with The Giving Tree. Get the word out. We really need property hosts to host these people. If you’re interested in living tiny, there are so many affordable ways to do so and I can help you, Tiny Homes in Canada can help you with their directories. So lots and lots and lots of options, guys. Thank you for listening and always reach out if you have any questions.
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