Tiny House: For Hosting
The Ultimate Guide for Tiny Home Hosts
We've all heard of tiny houses and perhaps even stayed in one, but have you considered the possibility of earning income from hosting your own tiny house?
New data from Airbnb highlights a growing desire for travel experiences that provide a taste of local life, away from the crowds and queues of tourist hotspots.
Tiny houses provide the perfect setting for a short-term rental—they're novel, cozy, connected with nature, and offer the perfect retreat for people to experience local life. And because they're, well, tiny, you don't need much space—most backyards would have ample room!
Additionally, because tiny houses are on wheels, they don't need council approval. You can hook up to all services and build a deck without council involvement—skipping the usual headaches of development applications.
The Idea - Micro-Stays
Australia is internationally recognized for its natural beauty, from the Great Barrier Reef to the Blue Mountains. With our generous blocks of land, often featuring stunning views, we're in the perfect position to become hosts right in our backyards.
It's not a new idea, but tiny houses offer a special appeal to visitors. According to Airbnb, tiny homes have emerged as the top-grossing unique accommodation category—with over 2.5 million nights booked in 2024 alone, underscoring their explosive growth over the past five years.
Some of us have views of the escarpment, others rolling hills, others still a sanctuary surrounded by trees. By hosting, you can share the lifestyle of living where you do while creating an additional income stream.
Hosting is simple, with everything automated inside easy-to-use apps and websites. With a lockbox, you can offer a "no-touch" experience, meaning guests arrive at their cabin without personal introduction and feel at home for the weekend. It's a great way to increase your income with flexible working times—low effort, high reward.
We've coined this use of a tiny home as: Micro-Stays.
The Business Case
According to AirDNA, the average annual revenue for the Blue Mountains is $58.8k per listing, up 6% from last year.
It's a great idea, but if the money doesn't work, it'll never happen. So let's break down what your expected take-home is from a tiny home:
We're using the Blue Mountains as an example since that's where we're based. Looking online, tiny houses rent from $200-400 a night (plus cleaning fee). Let's go conservative and say $250/night.
Occupancy rate is the percentage of nights you get booked per week. The average according to AirDNA is 65% or 4.5 nights a week.
Blue Mountains Projections:
- Daily Rate: $250 with 65% occupancy
- Annual Revenue: $59,250
- Monthly Revenue: $4,937.50
An extra $5,000 in your pocket each month sounds amazing, but let's consider the cost of a tiny home:
Tall Tiny's Backyard model is $105,000 and perfect for your Micro-Stays. Let's add a deck, connect utilities, add an outdoor bath, and beautiful bedding for about $15,000, and you're ready to invite guests!
At $59,250 annual revenue, the return on investment (ROI) would be 2 years—then everything is profit.
Loan Considerations:
If you don't have $120,000 to spare and need a loan:
- Loan: $120,000 at 10% over 10 years
- Monthly Payment: $1,596
Micro-Stay Revenue and Profit Analysis:
- Monthly Revenue: $4,937.50
- Monthly Net Profit: $3,341.50
- Annual Net Profit: $40,098
With a loan for the total cost of the micro-stay including connections, you're making over $3,300/month—a great return for the work involved. Add more tiny homes, make more money.
On platforms like Airbnb, you can add a cleaning fee on top of this to pay for cleaning (or to make additional income). The average cleaning fee for Airbnb hosts who do their own cleaning is around $65 per booking. As the tiny home is so small, it doesn't take much to clean at all.
Other considerations include utilities and property maintenance costs.
Why a Tall Tiny House?
What tiny house should you buy to build your Micro-Stay? You need a well-designed tiny house that appeals to a broad audience, is built to last as long as your own home, and is eco-friendly because we've only got one planet.
Since 2024, hosts have found that incorporating eco-friendly features not only cuts operating costs but also lets them charge a premium—one seasoned host reported a 15% boost in revenue on their green listing compared to standard ones.
Tall Tiny designs and builds cabins that offer the architectural quality of a hotel suite yet leave no trace on the environment.
Investing in thoughtful, high-quality design has proven to be a game-changer. A top-rated Airbnb host shared, "A beautifully curated space creates an emotional connection with guests, and we've seen our nightly rates jump by over 20% as a result."
We work with you to design your ideal Micro-Stay. Whether it's in Mudgee matching a winery's modern farmhouse design, or on the coast with a boho-chic aesthetic, we tailor it to your environment and taste.
Tall Tiny designs and builds everything in-house, so if you want all timber joinery, it's entirely possible.
Not only are our designs beautiful, but they're carbon-neutral, use low-tox materials and finishes, and come with a 5-year warranty. Built with care, built to last.
If you have a beautiful piece of land, our tiny homes can be completely off-grid when they arrive—simply put the feet down, and your Micro-Stay is ready.
How to Set Up Your Micro-Stay
Location, Location, Location
First, you need the right spot—ideally somewhere private yet accessible. If you've got that plus scenic views, you're already winning.
Our team will work with you to ensure the site works for tiny home installation.
The Tiny House
The biggest part of your Micro-Stay is the house itself. Tall Tiny takes the guesswork out of designing a beautiful, cozy interior. All you need to do is add quality bedding and personal touches.
Off-Grid vs. On-Grid Options
This is determined on a site-by-site basis. Considerations include:
- Where your closest power board is to run a new 15A cable
- Location of sewage infrastructure—downhill/uphill, macerator pumps, septic systems, etc.
- Grey water management—grease traps, absorption pits, etc.
If this sounds technical and daunting, the Tall Tiny team will work with you every step of the way to ensure an easy project, so you can focus on what matters—hosting!
Here's what a previous client has said:
"From the moment we started engaging on designs and quote through to build and delivery (to Tasmania no less) the guys have been great with communication and flexible as we made customisations to bring our dream tiny to life!" - Netta Egoz
Maximizing Bookings & Guest Experience
Choose the Right Platform
Airbnb, Stayz, Booking.com, or direct bookings? Each has pros and cons:
- Airbnb: Largest user base, strong protections, but high fees
- Stayz: Great for family stays, lower competition, but smaller market
- Booking.com: High visibility, instant bookings, but strict policies
- Direct Bookings: No fees, full control, but requires marketing effort
Set the Right Price
Pricing depends on location, view, privacy, and unique amenities. Research similar listings to stay competitive.
Create an Outstanding Experience
- Enhance the space with an outdoor bath, firepit, or deck
- Small touches matter—complimentary coffee, local guides, or a welcome drink
- Consider your target guests—romantic getaways need bathtubs for two, family stays need comfortable communal spaces
Your Micro-Stay Journey
The demand for unique, immersive, and eco-friendly stays is growing. Tiny homes are at the forefront, offering guests the connection to nature they crave. Here are the key benefits:
- Consistent Demand: Unique stays attract high-paying guests
- Sustainable & Low-Impact: Better for you and the planet
- High ROI, Low Overheads: More affordable than traditional holiday homes with stronger returns
- Flexible & Adaptable: Can be moved, repurposed, or sold if needed
What's Next
Now that you've seen how a well-designed, eco-friendly tiny house can boost your income, it's time to turn insight into action. Here's how to get started:
- Call Us Today: Our team can evaluate your property, assessing its potential for hosting and installation options
- Explore Design Options: Browse our gallery of Tall Tiny Homes and discover design features that enhance aesthetics and drive higher nightly rates
- Consult with Experts: Schedule a free consultation to discuss your situation and options for moving forward
Take the next step toward creating a sustainable, profitable Micro-Stay!
