Running a Rental Business

The Host Guide to Listing Tiny Houses on Airbnb

Tiny homes have grown in popularity over the years due to their sleek and stylish atmospheres provided at a cheaper price. Their increasing demand and lower startup costs make tiny homes a potentially profitable opportunity for Airbnb hosts. Learn the pros and cons of listing a tiny house vacation rental.

By The Turno Team

Last updated: November 18, 2023

What Is an Airbnb Tiny House?

A tiny house is simply what it sounds like: a home that is tiny.

These unique residences are typically smaller than 600 square feet, though, on average, they are closer to 300 square feet. They can be built on a cement foundation or a trailer.

Tiny houses differ from similar small living arrangements, such as large campers or RVs, due to their beautiful interiors that are reflective of a normal house. A tiny home will generally come with everything you need to live comfortably, including a kitchen, bathroom, and living and storage spaces.

Are Tiny Homes on Airbnb Profitable?

The profitability of tiny homes on Airbnb varies based on factors like location, amenities, and pricing. In popular tourist destinations or areas with high demand for unique accommodations, tiny homes can be profitable due to higher nightly rates and occupancy. However, it’s essential to consider: 

  • Operating costs like maintenance, utilities, and cleaning
  • Effective marketing
  • Elevated guest experiences 

Positive reviews play a crucial role in consistent bookings and profitability. Hosts with well-maintained, thoughtfully designed tiny homes and competitive pricing strategies are more likely to achieve profitability, making it a viable option for those willing to invest time and effort into hosting a tiny home for Airbnb.

wooden airbnb tiny house in forest

According to Woodlands Online, some additional factors that will improve your chances of profitability are:

  • Hosting at or near a desired location
  • Keeping things clean
  • Creating an attractive aesthetic
  • Providing great customer service 

Like a normal Airbnb, the key to success is making staying at your tiny home rental a great experience from which people can come away happy and satisfied.

How to Start Hosting a Tiny House on Airbnb

Hosting a tiny home on Airbnb can be a unique and rewarding experience, but it requires careful planning and attention to detail to ensure a successful listing. Here are the steps to get started:

Legal Considerations

Check local zoning laws and regulations: Make sure that hosting a tiny home on your property is permitted by local zoning laws and regulations. Some areas may have restrictions on the use of tiny homes as short-term rentals.

Prepare Your Tiny Home

Make necessary repairs and upgrades to ensure that your tiny home is in excellent condition and complies with all safety and building codes. 

  • Furnish and decorate: Furnish your tiny home with comfortable and functional furniture. Pay attention to the layout and use space-saving furniture where possible.
  • Stock essential amenities: Provide basic amenities such as bedding, towels, toiletries, kitchenware, and appliances.
  • Install safety features: Install smoke detectors, carbon monoxide detectors, and a fire extinguisher for safety.

Create a Listing

Creating a listing for your tiny home on Airbnb offers numerous benefits. It opens the door to a global audience of travelers, provides an additional income stream, and offers the flexibility to manage bookings on your terms, all while sharing your love for tiny living. Create your listing to boost instant bookings by: 

  • Adding detailed photos: Take high-quality photos of your tiny home, both inside and outside. Showcase the unique features and amenities.
  • Writing a compelling description: Write a detailed and engaging description of your tiny home, highlighting its charm, amenities, and nearby attractions.
  • Setting your pricing: Research similar listings in your area to determine a competitive price. Airbnb offers pricing suggestions, but you can adjust them as needed.
  • Specifying house rules: Outline any rules and expectations for guests, such as check-in/check-out times, pet policies, and smoking policies.
  • Enabling instant booking (optional): Decide whether you want to allow guests to book instantly or if you prefer to approve each reservation manually.

Booking Management

The key to successfully running a tiny home Airbnb is to have a good handle on your bookings. Proper management is established with a well-thought-out schedule that works best for you, your guests, and property managers or maintenance staff. Make sure to: 

  • Create an availability calendar for potential guests to book with you. 
  • Keep your calendar up-to-date and block off dates when it’s not available. 
  • Set minimum and maximum stay requirements to ensure you’re not over or under-booked. 
  • Keep track of bookings and reservations using Airbnb’s host dashboard.
  • Be prepared for check-ins and check-outs, and ensure the tiny home is clean and well-maintained between guests.

Guest Communication

It’s important to be responsive to guest inquiries and messages from the beginning and even more so during their stay. Quick responses can improve your Airbnb ranking. When prepping guests for their stay in your tiny home, provide detailed instructions on how to access the tiny home, use appliances, and any other important information. 

Safety and Security

Hosting a tiny home on Airbnb can be a fulfilling endeavor, offering you the opportunity to share your unique space with travelers and earn extra income. However, it’s essential to provide a welcoming and comfortable experience for guests while also adhering to legal requirements and safety standards. 

Ensure the safety of your guests by providing information on emergency contacts, nearby medical facilities, and any unique safety considerations in your tiny home. Install a keyless entry system with a unique code for each guest to enhance the security and convenience of managing your airbnb tiny house.

Address any structural issues, or electrical or plumbing concerns, and ensure fire safety measures are up to code to enhance the overall safety and satisfaction of your guests during their stay. Routinely check that everything is functioning properly and address repairs accordingly to decrease the risk of guest injury or complaints. 

Encourage Reviews

Encouraging guests to share their feedback through reviews is a valuable practice. These reviews not only provide valuable insights for future guests but also play a pivotal role in enhancing your Airbnb listing’s visibility and credibility.

Positive reviews serve as testimonials that potential guests rely on when making booking decisions. They establish trust and confidence in your hosting capabilities, assuring prospective visitors of a pleasant and memorable stay. 

Additionally, Airbnb’s search algorithm often prioritizes listings with a higher number of positive reviews, thereby increasing your listing’s visibility in search results. Consistently delivering excellent guest experiences and encouraging reviews can significantly impact your tiny home’s success as an Airbnb host.

Marketing and Promotion

First and foremost, you’ll want to create an appealing Airbnb profile. Fill out your host profile and provide a friendly headshot. Utilize professional Airbnb photography to showcase your tiny home. Have multiple images with different angles of your space. When using the listing of your  tiny home on Airbnb as a promotional element, highlight these key features to attract potential guests:

  • Cozy and Compact: Emphasize the charm of a small, cozy space that offers a unique and intimate experience.
  • Efficient Design: Showcase space-saving and multifunctional furniture and design elements.
  • Fully Equipped: Mention that the tiny home comes with all essential amenities, including a kitchen, bathroom, and living area.
  • Stylish Interior: Highlight the tasteful and well-designed interior, making it feel like a home away from home.
  • Sustainability: Mention eco-friendly features, such as solar panels or composting toilets, for eco-conscious travelers.
  • Privacy: Emphasize the secluded and private nature of the tiny home.
  • Unique Experience: Highlight the opportunity for a one-of-a-kind, memorable stay.
  • Affordability: Mention the cost-effective nature of tiny home living, appealing to budget-conscious travelers.
  • Local Insights: Offer recommendations for nearby activities, dining, and attractions to enhance the guest experience.

Use social media and other online platforms to promote your listing, as well. Leveraging social media is a powerful tool to promote your Airbnb tiny home. It allows you to not only showcase captivating photos, but to engage with potential guests, share positive reviews, and create a vibrant online presence, increasing visibility and bookings.

inside living room and kitchen of an airbnb tiny house

Pros and Cons of Hosting an Airbnb Tiny House

A tiny home can be a great Airbnb rental option under the right circumstances, but there are some pros and cons to consider before purchasing or building your own tiny house.

Pros of a Tiny House Vacation Rental

One of the biggest pros of investing in a tiny house as a rental property is the low cost to buy or build it. 

According to research from, the average cost of a tiny house is $52,000, which is 87% cheaper than the national average of a typical home. This makes tiny homes a much more accessible option for people to use to generate rental income.

Another positive is that, unlike similar smaller-sized accommodations such as RVs, tiny homes are usually stationed in one place. This means that builders have more freedom to build out a more luxurious aesthetic and make it very homey.

Tiny homes can also be more enticing than renting a single room in an Airbnb because of the greater privacy. Pair this with the trending affinity towards tiny homes, they can be a popular option for renters looking for smaller and more affordable lodging.

Cons of a Tiny House Vacation Rental

One con to investing in a tiny house is that it does not appreciate in value as a typical house often will. This is due to the fact that a tiny house is often mobile and not connected to the land beneath it.

The land is what appreciates over time as demand in an area increases. This is in contrast to the house itself, which feels the effects of wear and tear and loses value as a result. In the case of a tiny house, since there is typically no land ownership associated with it, it is a depreciating asset like a car.

Additionally, despite it being a cheaper option than a traditional home, Airbnb tiny houses can be harder to finance. Many home loans will not accommodate tiny homes, as their cost is typically much less than a standard residence. Investors may have to turn to RV or personal loans, but these may not have as favorable loan conditions.

woman and dog on an airbnb tiny homes porch overlooking a mountain

Enhance Your Airbnb Tiny House Experience

A tiny house Airbnb can be a great way to get started earning rental income for a relatively cheap cost. Lower cost means less risk, so this can be a great place for beginners to start growing passive income.

If you are considering listing a tiny house on Airbnb, ensure that you will be able to have consistent bookings. Since a tiny home is a depreciating asset, it must be in use. Otherwise, it is costing you money.

To reiterate, the most important factor when gaining traction on Airbnb is to make staying at your location a great experience. From providing unique experiences at your property to keeping your Airbnb clean and presentable, the customer experience will be what determines your success or non-success.

Maintain your competitive edge on Airbnb with your tiny home by keeping the space clean and ready for guests at any given time. Through Turno’s Cleaner Marketplace, you can connect with reliable and affordable turnover specialists. Automate your cleaning schedules and build comprehensive checklists for cleaners to follow to ensure quality control. Focus on scaling your tiny home Airbnb business knowing that your properties are consistently being taken care of and managed properly.

The Turno Team Avatar
The Turno Team , The Turno Team researches and publishes articles designed to provide short-term rental Hosts, Property Managers, and Airbnb Cleaners with insightful, useful resources. Articles written by the Turno Team cover a wide range of STR interests, from the latest industry data and best practices to real-world, practical advice on running efficient, revenue-generating vacation rental businesses in an ever-changing market.