A startup based in California, United Dwelling, is transforming garages into tiny affordable homes. The company is joining hands with homeowners to offer affordable leases and functional tiny living spaces. The startup also has plans to expand its business to the Bay Area. Why are these houses so affordable and how is United Dwelling cooperating with homeowners for the construction of tiny affordable homes?
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United Dwelling Partnering with Homeowners
In case the startup United Dwelling partners with the homeowner, the company is renting the land where the tiny house unit will be set, which is usually in the backyard. The company also transforms garages into tiny houses that are more than affordable, especially in today’s housing market where the inventory is lacking units. In case of a partnership, the company will cover the costs for construction. Tiny houses constructed by the startup are not only affordable but are built in only 6 weeks.
Startup Leasing the Land for Tiny House Construction
The company may offer to homeowners to rent the land on which the affordable tiny house unit would be constructed. There are several options for leases, so homeowners may choose between 12, 15, or 25 years. After the lease expires, homeowners would own the unit. Housing units can be also directly bought from the company at an affordable price of 88,000$.
United Dwelling Rents and Tenants
United Dwelling created a business model with several options that are affordable for tenants and homeowners alike. In case homeowners and the company agree to rent the unit, the company would find up to 5 tenants per unit, where the homeowner would join the final selection. Rents for such units are said to be 20% lower than average rents in California. Homeowners would be able to earn from 500$ to 1200$ per month on rents.
