Costs & Returns
Renting out a tiny home in New Zealand
A tiny home costs a fraction of a house, and in the right location a short-stay guest will pay close to what a whole house earns in a week. That gap is the whole argument — but it only works if you understand the costs most people leave out. Here is the honest version.
How the numbers compare
A $850,000 rental house in New Zealand typically returns somewhere around 4-5% gross before costs, and ties up a large mortgage to do it.
A tiny home costs far less to build and can be let nightly rather than weekly. nightly rates in some locations can materially exceed long-term rental income. What that means for any particular site depends entirely on location, occupancy and operating costs — use the calculator in the 3D builder with your own numbers.
Typical approach
Long-term rental
The alternative
Short-stay rental
We have not yet let an ELTOM home, so we hold no occupancy or revenue data of our own. Run your own numbers in the calculator inside the 3D builder.
Tax treatment
How a transportable dwelling is treated for tax depends on how it is installed, how it is used, and your own circumstances. Whether any part of it is depreciable, and at what rate, is a question for your accountant and Inland Revenue — not something we can answer for you.
We are builders, not tax advisers. We will give your accountant a full specification and an itemised cost breakdown so they can advise you properly.
Open Yield ConfiguratorImportant
Everything on this page is general information about how tiny homes can be used as rental assets in New Zealand. It is not financial, tax, investment or legal advice, and it does not take your circumstances into account. The yield figures are illustrations built on assumed nightly rates and occupancy — they are not forecasts, projections or guarantees, and actual returns may be materially lower.
Rental income depends on location, seasonality, operating costs, insurance, and your local council's rules on short-stay accommodation and minor dwellings. Depreciation and tax treatment depend on your own position and on current Inland Revenue rules. Please talk to a licensed financial adviser, a chartered accountant and your local council before committing to a purchase.