Skip to headerSkip to main contentSkip to footer
Get our Free E-newslettersGet our Free E-newsletters
Kiplinger logoLink to homepage
Get our Free E-newslettersGet our Free E-newsletters
Subscribe to Kiplinger
Subscribe to Kiplinger
Save up to 76%
Subscribe
Subscribe to Kiplinger
  • Store
  • Home
  • Investing
  • Retirement
  • Taxes
  • Personal Finance
  • Your Business
  • Wealth Creation
    • Podcasts
    • Economic Outlooks
    • Tools
    • Kiplinger's Personal Finance Magazine
    • The Kiplinger Letter
    • The Kiplinger Tax Letter
    • Kiplinger's Investing for Income
    • Kiplinger's Retirement Report
    • Store
    • Manage My E-Newsletters
    • My Subscriptions
Skip advert
  • Home
  • personal finance
  • shopping
  • home
home

10 Things You Didn't Know About Living in a Tiny Home

It's a lazy weekend and you’re plunked down on the couch channel surfing.

by: Andrea Browne Taylor
January 22, 2019

Getty Images

Skip advert

It's a lazy weekend and you’re plunked down on the couch channel surfing. Before you know it, you've gotten caught up in a "Tiny House Hunters" marathon on HGTV. Several hours later, you're seriously considering downsizing your entire life to fit into 400 square feet or less, because you're now an expert on tiny home living, right? Not so fast. Those reality TV shows only provide a heavily edited snapshot of what it's like to house hunt for and live in such a small abode.

We talked with several seasoned tiny homeowners and industry experts to find some of the little-known things novice buyers don’t realize until after they've signed on the dotted line. Here's what they had to say about the realities of tiny home living.

  • Great Tiny Homes for Retirement
Skip advert
Skip advert
Skip advert

1 of 10

A Tiny Home Costs More Than You Think

Getty Images

Skip advert

Don't believe the hype the next time you read a glossy home magazine or see a reality TV show featuring a tiny home buyer who purchased their dwelling for under $10,000. That too-good-to-be-true price tag usually never includes the cost of labor, says Randy Woodman, a sales manager for Tiny Innovations, a Portland, Ore.-based tiny home builder.

What's also not mentioned is that "[those homes] are almost always constructed with donated or found materials," he says. The true cost -- including all labor and materials -- for a professionally built tiny home that sits on a trailer and has been inspected for quality usually starts around $40,000 for a 20-foot structure, Woodman notes.

Keep in mind that once you start adding high-end finishes, such as quartz countertops and bamboo floors, as well as top of line appliances (think: an energy-efficient washer/dryer combo) to the design plan, that final amount will increase.

 

  • 7 Ways to Retire Without a Mortgage
Skip advert
Skip advert
Skip advert

2 of 10

Getting Homeowners Insurance Is Tricky

Getty Images

Skip advert

Since a tiny home isn't a typical housing structure, you'll need to seek out a tiny house-specific homeowners insurance policy. Having such a policy helps protect the house and its belongings from a destructive event, as well as theft. Stationary tiny homes, which are permanently attached to a foundation on a plot of land, are typically viewed by insurance companies as being comparable to traditional single-family homes. That makes it easier for them to get approved for coverage.

Homeowners who live in movable tiny homes that sit on a mobile trailer may face a bigger challenge. If your tiny home on wheels is registered as a certified RV, you can get a recreational vehicle insurance policy, which is similar to an automotive policy, according to TinyHouseBuild.com, an online resource for the tiny home community. Coverage includes collision, content protection and liability. The caveat with this type of policy is that many insurers exclude anyone living in the dwelling full time, the site notes. Also, RV insurance typically only covers certified RVs constructed by a manufacturer approved by the Recreational Vehicle Industry Association (RVIA).

If your movable tiny home isn't registered as a certified RV, once you find a willing insurer, you'll need to get creative with the type of policy you're able to obtain. For example, inland marine insurance policies have been used to cover tiny homes on wheels, but such policies don't come with liability coverage, according to TinyHouseBuild.com. Some tiny homeowners even use renter's insurance, which provides liability coverage, covers personal belongings in the event of theft, as well as living expenses for a short period if the home becomes inhabitable. However, the structure itself isn't covered under this type of policy, the site states.

 

  • 70 Valuable Things You Can Get for Free
Skip advert
Skip advert
Skip advert

3 of 10

Tidying Up Is a Constant Chore

Getty Images

Skip advert

Having less house doesn’t necessarily mean you'll have less housework. Rather, you may find that dirt and clutter accumulate more quickly in such a small space, forcing you to clean more often, suggests Jenna Spesard, a Los Angeles-based tiny homeowner and travel blogger at TinyHouseGiantJourney.com. “Although it only takes a few minutes, I seem to be constantly cleaning in order to keep it tidy. It's a never-ending cycle,” she says. Kahla McRoberts, a Durango, Colo.-based tiny homeowner and blogger at ToLiveTiny.com, mentions that she has to clean her floor and carpet daily -- sometimes twice a day -- because it’s obvious when they’re dirty.

To prevent becoming overwhelmed by clutter, keeping your tiny home organized at all times is key, McRoberts notes. Forgetting to fold a huge pile of laundry immediately after taking it out of the dryer or leaving dishes stacked in the kitchen sink can wreak havoc on an already limited living space. Investing in storage containers that easily fit into a closet or slide underneath a table or bed can help keep things tidy without adding to the mess.

 

Skip advert
Skip advert
Skip advert

4 of 10

Shopping Sprees Are a Thing of the Past

Getty Images

Skip advert

At less than 400 square feet, a typical tiny home doesn't leave much room for storage. If you have a shopping habit, you'll need to get it under control fast. When you become a tiny home owner, trips to the store must be planned in advance to prevent over-buying. Even something as simple as purchasing groceries requires taking inventory of the food and household items you already have on hand and meal-planning ahead of time, notes TinyHouseGiantJourney.com's Spesard. "If I accidentally bought a gallon of milk when there was already one waiting for me at home, it would be a disaster," she says.

Kerri Fivecoat-Campbell, a longtime tiny homeowner based in Arkansas and author of Living Large in Our Little House, says that she and her husband adhere to the "one in, one out" philosophy to help combat over-buying, which can quickly lead to clutter. "We can't just buy something because we want it. There's no room to keep adding . . . If we bring in something else, it must have more function and we must love it more than what we need to donate." 

QUIZ: How Smart of a Home Buyer Are You?

Skip advert
Skip advert
Skip advert

5 of 10

Traveling With a Tiny Home Is Costly

Getty Images

Skip advert

Sure, the flexibility of living in a movable tiny home is enticing. You can pack up and relocate to a new city at a moment's notice, or take a road trip without having to worry about lodging. However, travel-related expenses can add up fast depending on how much you're on the road, warns TinyHouseGiantJourney.com's Spesard.

Spesard, who traveled 25,000 miles during her first year of tiny homeownership, quickly found that related costs were taking a huge chunk out of her monthly budget. "With the amount of miles I was going, I was getting about nine miles per gallon [in gas on her Ford F250 used to transport her home]," she recalls. "I was spending about $700 per month on gas. Then I had to pay for campsites [to park overnight or for extended periods] and car maintenance.” Now, Spesard says she no longer travels with her tiny home and her lifestyle has become more affordable as a result.

If you have a tiny home that's movable and prefer to travel for leisure, consider venturing to a destination where you have family and friends nearby. That way you can camp out for a night or two with permission in their driveway or backyard free of charge.

 

Skip advert
Skip advert
Skip advert

6 of 10

Long-Term Parking Options Are Limited

Getty Images

Skip advert

Unless you own a plot of land, you'll need a place to legally park a movable tiny home; you can't just park it anywhere, says Tiny Innovations' Woodman. Many states have zoning laws in place that heavily restrict where you can park such a dwelling and for how long. And if you're interested in buying a stationary tiny home, it's illegal in some states to live in such a structure if the square footage doesn’t meet the required minimum, according to Realtor.com.

If you have a tiny home on wheels and it's registered as a recreational vehicle, you can legally park it at an RV campground for a fee. Depending on the length of your stay, you'll either be charged a daily, weekly or monthly rate, which includes utility and sewer hookups. For example, at Cherry Hill Park, an RV park in College Park, Md., prices range from $77 to $98 per night. At Archway RV Park in Mt. Vernon, Ill., the daily rate is $38 and the weekly fee ranges from $150 to $175. In Portland, Ore., movable tiny-home dwellers can park at Columbia River RV Park on a daily ($40-$45), weekly ($240-$280) or monthly basis ($400-$595). Some campgrounds offer additional amenities including access to WiFi, a laundromat, swimming pool and picnic areas.

Keep in mind that some RV parks have restrictions including age requirements (for example, retirement-focused campgrounds targeting guests 55 and over), limits on the length of stay or no-pets policies.

 

  • Home Buyers, What $300,000 Buys in 21 Big Cities Across the U.S.
Skip advert
Skip advert
Skip advert

7 of 10

Entertaining Is a Challenge

Getty Images

Skip advert

If you enjoy hosting dinner parties or summertime barbeques with family and friends, get ready to pare down that invite list significantly once you move into a tiny home. Less living space means less room to entertain guests, ToLiveTiny.com's McRoberts reminds would-be buyers. For example, instead of having 10 friends over for wine and cheese on a Saturday night, you may only be able to comfortably accommodate four to six people.

McRoberts, who currently lives in a 220-square-foot tiny home that sits on a trailer, says she'd like to one day move it to her own plot of land where she'd create a large outdoor space that allows for entertaining more guests. It would also provide room for her dog to run around.

 

  • 10 Great Tiny Homes for Retirees
Skip advert
Skip advert
Skip advert

8 of 10

Your Tiny Home Might Get Stolen

Getty Images

Skip advert

Believe or not, theft is an ongoing issue in the tiny home community for those that own movable dwellings. Thieves can literally pull up to an unoccupied home, hitch it to a truck and drive off with all the owner’s possessions in tow never to be seen again. In many of these incidents, the home was situated in plain sight of a road, which can attract unwanted attention from curious passersby and thieves, according to TheTinyLife.com, an online resource for the tiny home community. With that in mind, the site recommends situating your tiny home in a place that's hidden from heavily trafficked areas, perhaps by shrubbery or trees. While doing this doesn't guarantee your home won't be stolen, it can help lessen the chance that someone with ill intentions will spot it, the site notes.

There are a few other tactics tiny homeowners can employ to help combat theft. Tumbleweed Tiny House Company, a Colorado Springs, Colo.-based tiny home builder, recommends doing the following:

  • Use a hitchlock to help stop a potential thief from unhitching your tiny home from your vehicle.
  • Block the trailer wheels by piling bricks or cinder blocks in front of each wheel in conjunction with using a wheel lock on at least one wheel to prevent the trailer from moving forward or backward.
  • Chain your trailer using a heavy-duty chain to a tree or other permanent structure.

 

Skip advert
Skip advert
Skip advert

9 of 10

Good Luck Selling Your Second-Hand Tiny Home

Getty Images

Skip advert

A tiny home can be ideal if you’re single or sharing it with a partner. But add a child (or even a pet or two) to the mix and your cozy household will get really crowded really fast -- a big reason why some people would never live in a tiny home in the first place. So if you find yourself in a position that you need to sell your tiny home to afford the down payment on a larger, traditional house, you’ll need patience and luck. While the tiny home market is growing, it’s a sliver of the overall housing market. According to the National Association of Realtors, just 1% of the homes sold in the U.S. in 2017 were under 1,000 square feet.

Adding to the challenge, most tiny homes were customized to fit the original owner’s specifications. This can significantly shrink the already small pool of potential buyers and “make it difficult to recoup the cost of materials and labor,” says Ryan Mitchell, blogger and owner of TheTinyLife.com, an online resource for tiny homeowners. For example, a retiree may want a single level tiny house without stairs or a sleep loft ladder to climb. A younger buyer may prefer a sleeping loft that requires climbing a ladder to access, because it allows for more living space to entertain on the lower level.

If you must sell your tiny home, be sure to emphasize its space- and money-saving features in the listing, advises Judy Dutton, deputy editor for Realtor.com. This includes low monthly utility bills and built-in furniture such as a Murphy bed. If you live in a stationary tiny home that has yard space for entertaining, you’ll want to mention that and include high-resolution photos with the listing.

 

Skip advert
Skip advert
Skip advert

10 of 10

Tiny Home Living Can Pay Off Financially

Getty Images

Skip advert

While there are some things that can be frustrating about tiny home living, there are other aspects that make it worthwhile to the bottom lines of owners. Top of the list: Nearly 70% of tiny home dwellers don't have a mortgage compared to just 30% of traditional home owners, according to a survey conducted by TheTinyLife.com.

The potential financial upsides don't end there. TheTinyLife.com's Mitchell says since becoming a tiny homeowner, he's been able to travel the world, pay off his student loan debt much earlier than expected and only works about 10 hours per week to cover his living expenses. He's even able to stash away some cash each month -- and those savings can quickly add up. That same survey found that 55% of tiny homeowners have more savings than the average homeowner, with a median amount of about $11,000 in the bank.

 

Skip advert
Skip advert
Skip advert
  • home insurance
  • home improvement
  • refinancing
  • how to save money
  • buying a home
  • home
  • Becoming a Homeowner
Share via EmailShare on FacebookShare on TwitterShare on LinkedIn
Skip advert
Skip advert
Skip advert
Skip advert

Recommended

11 Best Things to Keep in a Safe Deposit Box
home

11 Best Things to Keep in a Safe Deposit Box

These valuables and documents, along with some items you hold dear, should be stored securely at your bank.
May 18, 2022
Things You’ll Regret Keeping in a Safe Deposit Box
savings

Things You’ll Regret Keeping in a Safe Deposit Box

Locking up certain important documents and valuables in a bank vault could turn into a headache for you or your heirs.
May 18, 2022
Which Documents to Keep, Which to Shred and Which to Scan
home insurance

Which Documents to Keep, Which to Shred and Which to Scan

A speedy recovery from disaster can depend on your recordkeeping. Kiplinger’s Personal Finance writer Rivan Stinson tells us how to get our papers in …
May 4, 2022
The 25 Cheapest U.S. Cities to Live In
places to live

The 25 Cheapest U.S. Cities to Live In

Take a look at our list of American cities with the lowest costs of living. Is one of the cheapest cities in the U.S. right for you?
April 28, 2022

Most Popular

The Best Stocks for a Bear Market
stocks to buy

The Best Stocks for a Bear Market

The ideal bear-market stock pick should have a defensive business, a long history of dividend growth and relatively low volatility. Here are 10 stocks…
May 18, 2022
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
15 Stocks Warren Buffett Is Buying (And 7 He's Selling)
stocks

15 Stocks Warren Buffett Is Buying (And 7 He's Selling)

Berkshire Hathaway CEO Warren Buffett is a bull once more! The Oracle and his team entered eight new positions and added to others in a big way.
May 17, 2022
  • Customer Service
  • About Us
  • Advertise With Us (PDF)
  • Privacy Policy
  • Cookie Policy
  • Kiplinger Careers
  • Accessibility
  • Privacy Preferences

Subscribe to Kiplinger's Personal Finance

Be a smarter, better informed investor.
Save up to 76%Subscribe to Kiplinger's Personal Finance
Do Not Sell My Information

Kiplinger is part of Future plc, an international media group and leading digital publisher. Visit our corporate site www.futureplc.com
© Future US LLC, 10th floor, 1100 13th Street NW, Washington, DC 20005. All rights reserved.

Follow us on InstagramFollow us on FacebookFollow us on TwitterConnect on LinkedInConnect on YouTube