Not having a mortgage can certainly make life a lot cheaper. With the average price of a traditional home around $273,000 according to Redfin, it’s no surprise that some people are exploring alternative housing options to save money.
The tiny house movement has gained popularity in recent years, especially with prices for tiny homes starting as low as $20,000. However, there are certain expenses that tiny homebuyers may overlook before purchasing or building a small home. Here are five unexpected costs. (See also: Can Tiny House Living Actually Save You Money?)
1. Land
While it’s expected to pay for land, it can easily be forgotten if the tiny home is on wheels and you intend to move it. Even if you initially place your tiny home on a friend’s or relative’s property for free, consider the future possibility of relocating, which may require paying rent for a lot or space.
2. Zoning Laws
The jurisdiction of the land where you plan to put your tiny home will likely have various laws regarding zoning, land use, and building requirements. These regulations are typically expensive and necessary to ensure safety and compliance. If your tiny home is not approved by the local government, you might face code enforcement actions, fines, or be forced to remove your home.
A tiny house on a permanent foundation must adhere to one set of zoning codes, while a tiny house on wheels classified as a recreational vehicle will follow different regulations, possibly limiting its use for temporary residence only. It’s crucial to check local regulations to fully understand the applicable laws.
3. Cost of Mobility
The mobility of a tiny home is appealing, allowing it to be towed or transported on a flatbed truck. However, if you’re spending money to comply with zoning laws or purchase land, the convenience of mobility may come at a higher cost. If you cannot tow the tiny house yourself, you’ll need to pay for professional moving services.
For a tiny home to be legally towed, it must meet certain road requirements, which include size restrictions (not exceeding 13 feet 6 inches in height and 8 feet 6 inches in width in the U.S.). Even if your truck has enough power to tow a 15,000-pound tiny house, you must ensure proper equipment such as trailer brakes, suitable transmission, and the skills necessary for towing.
These expenses can fluctuate, but Tiny House Giant Journey estimates an annual towing cost of approximately $1,520, which covers gas, maintenance, insurance, campground fees, and propane.
4. Utilities
Regardless of the size of your house, utilities like water, electricity, gas, and garbage disposal are inherent living expenses. How do these utilities impact the cost of living in a tiny home?
If the area you reside in provides normal utility services, the costs may not vary significantly. However, if you’re frequently relocating, you may incur hookup fees each time. You might face unique challenges, such as finding easily accessible drinking water or experiencing higher costs for mobile internet services compared to fixed locations, along with regular laundromat visits due to a lack of washing facilities.
5. Resale Value
Considering the resale value of your tiny home might not be a priority when you first move in, yet it could become an issue later on.
The market for tiny houses is still developing, making it uncertain whether their resale value will increase. As with traditional homes, location is likely a significant factor. A mobile tiny home may be viewed similarly to an RV, which can depreciate rapidly like a vehicle.
Since tiny homes offer limited space, any potential new owner will likely need to accept the same customizations you made unless they are willing to invest in substantial changes. While you might prefer a small kitchen and a large living area, another buyer may have the opposite preference. (See also: 3 Ways to Finance a Tiny House)
