Monday 2 January 2017

Renting a spot - how much is too much?

Unless I win the lottery, I will definitely need to be renting a spot for Happinest. As tiny houses gain popularity, it is beginning to seem that people are having to pay a premium for a place to park. RV parks (in my area) start at $700/month. Private land (which is occasionally available even though it is not legal to have a tiny house there) lately seems to be in the $500-900 range.

I understand that the land-owner has to give up a bit of privacy and that they may have to invest a bit of money to have hydro/water and possibly septic available but some of these prices seem a bit excessive. I fully expect to pay for the privilege of having a spot to live and the costs to service it ... but I am still bringing my own house! No one is shelling out big amounts of cash to convert part of a home into an apartment or having to giving up a portion of their home. I'm just occupying a small piece of land that wasn't being used anyway.

It is quite possible that it is not realistic but I have a mental sliding scale of what I am willing to pay to live somewhere - $300 for an average place (that meets some of my needs/wants and that will probably only be a temporary stay until I can find what I really want), $400 for a nice place (but not my ideal location) and $500 for something that meets all of my needs/wants (especially being close to off-leash dog areas and/or the ocean).

Assuming that I am going to live for at least twenty years, renting a spot to me (particularly that ideal one that I will never want to leave) is a very good investment for a landowner. It may cost a few thousand dollars to have a serviceable site but if I find that perfect $500/month location, they will be getting back $6,000 a year. Even after that initial investment (which would probably be recovered within the first year), they are going to be making well over $100,000 for renting that bit of land for the next twenty years. And, as an added bonus, they also have the extra benefit of having someone on site that provides extra security and possibly even animal/house/plant care if they are away.


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