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15 Must-Know Tips Before Building Your Tiny Home - A BuildLabs’ Guide

May 9, 2025
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Jill Nielsen
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For a ski trip last winter, our family of six stayed at a modern tiny home resort in Brian Head, Utah. With vaulted ceilings, expansive windows, and a clever layout that slept seven (thanks to a loft and hallway berth), it showcased compact living at its best. 

As a blizzard raged outside, we cooked meals, played games at the built-in banquette table, and realized something surprising: we were comfortable. 

Between board games, my husband and I analyzed the design, noting possible improvements. What about lower ceiling heights for more headroom in the loft? Reposition the bathroom? More storage? We began to seriously imagine how a tiny home could work for us back home – if not as a full-time residence, then perhaps as a flexible living solution.

Turns out we’re not alone. Research by IPX 1031, a subsidiary of Fidelity National Finance, shows that 73% of those surveyed would consider living in a tiny home, citing reasons like affordability, simplicity, and less need for space. Whatever the reason, our family vacation proved that a well-designed tiny home isn’t about sacrifice – it’s about possibilities. Imagine:

  • A Detached Home Office – A distraction-free workspace with a Murphy bed that effortlessly converts to guest quarters when needed. 
  • An Independent In-Law Suite – Private and safe living space for aging parents that maintains both proximity and autonomy; a future-proof solution for multigenerational living.
  • A Dedicated Home Gym – A purpose-built space for wellness that keeps your workout mere steps from your front door. No commute, no excuses.
  • A Versatile Guest Cottage – Perfect for hosting visitors, adult children, or serving as a poolside retreat for entertaining.
  • A Family Compound – A cluster of tiny homes around communal spaces that strikes just the right balance between privacy and togetherness, a smart alternative to everyone squeezing in under one roof.  

Whether inspired by a vacation experience like ours or exploring ways to expand your property’s functionality, a successful tiny home takes strategic design, smart decisions, and a thorough understanding of the rules involved. To help you navigate the process, BuildLabs – pioneers of innovative, efficient, and sustainable home design and construction – presents these 15 essential tips for creating a tiny home as practical as it is inviting.

Tiny Home + 15 Must-Know Tips Before Building Your Tiny Home OR ADU

15 Must-Know Tips Before Building Your Tiny Home OR ADU

1. Start with “Why?”

Tiny homes are less about living small and more about living intentionally. Consider first what you hope to gain from a tiny home. A minimalist lifestyle? Financial freedom? Guest quarters?  A solution for multi-generational living? The motive shapes everything, from size to layout to design. 

For example, a tiny house designed for aging parents prioritizes safety and accessibility, while a multi-use space may include lofts, convertible furniture, and versatile spaces. Starting with your “why” will help guide the rest of your decisions. 

2. Know Your Budget

A well-planned budget helps avoid costly surprises, and in tiny living, every dollar – and square foot – counts.

The average tiny home costs between $30,000 - $60,000, but prices range from as little as $4,000 for a bare-bones build up to $300,000 for a high-end, fully customized model. And that’s just the starting point. Land, permits, and unexpected expenses can quickly push costs higher. Even where money is no object, it’s wise to understand the costs and to have a realistic budget in mind. 

Several factors determine cost: 

  • Build Type – do you plan to DIY, hire a builder, or buy a pre-owned or ready made tiny home? Prefabricated kits and models are convenient and widely available (some even include free shipping), but often come at a premium and with reduced options for customization. 
  • Fixed vx. Mobile – A mobile tiny home is typically cheaper than a fixed home that requires a proper foundation.  
  • Hidden Requirements – local requirements might demand soil testing, snow-load roofing, or utility hookups, adding unforeseen costs. 

Even after construction, the budget must account for land, storage, and furnishings. If the home is fixed in place, will you buy or rent land? Or do you plan to park it on someone else's property? In addition to the high cost of custom built-in storage, a tiny home may still not accommodate all your things, requiring a storage unit. And a home, even a tiny home, will need appliances and furniture. 

3. Consider Mobility: Should Your Tiny Home Be Mobile or Fixed?

One of the first questions to ask is whether your tiny home will stay put (fixed) or will travel with you (mobile). 

  • Fixed Tiny Home – offers stability and often aligns more easily with zoning laws, especially when classified as an Accessory Dwelling Unit (ADU). Those builds can plug into city utilities and add long-term value to a property. Fixed homes are a good choice if permanences and easy integration are important to you. 
  • Mobile Tiny Home – built on trailers, mobile homes are ideal for those with a bit of wanderlust, beit a retiree eager to see the country or a digital nomad chasing new views. Keep in mind, however, that a mobile tiny home is not a de facto RV and may be banned from campgrounds or RV parks. Some municipalities recognized wheeled ADUs as temporary structures, which can fast-track permits. 

Mobility offers freedom, but fixed homes face fewer legal roadblocks. Choose the option that fits your lifestyle and local regulations. 

4. Know the Local Zoning Laws and Building Codes

Before you break ground or hit the road, know the rules.

Zoning laws, building codes, permit requirements, and compliance rules vary dramatically across the country – even from one city to the next. What qualifies as a legal ADU in Los Angeles may be considered an illegal dwelling in another zip code. And if your tiny home is mobile, the patchwork of laws across state lines becomes even more complex.

Skip the paperwork, and your tiny home could amount to nothing more than an expensive shed – unsuitable for living. One Oregon family was forced to vacate their tiny home after the city ruled it illegal, facing steep fines for noncompliance. 

Do your homework early. Many cities now offer streamlined processes for ADUs or recognize wheeled units as temporary structures. These can be major time- and cost-savers.

Tiny Home + Know the Local Zoning Laws and Building Codes

5. Choose the Right Location

The location of your tiny home can make a big difference in both convenience and cost. Whether you’re drawn to the hustle and bustle of city life or the serenity of the countryside, each option has its own set of advantages and challenges.

  • Urban Lots: Benefit from existing utilities and infrastructure, but come with stricter zoning and space constraints. Maximize function with vertical storage and strong soundproofing. Be sure to check local ADU rules; some cities offer streamlined approvals, while others prohibit tiny homes altogether.
  • Rural Land: Offers space, privacy, and fewer restrictions, but often lacks essential services. Utility connections cost $6,500 to $30,000 on average, but can be much more. Also consider access issues like soil conditions and soil quality, snow removal, off-grid power, and road access, especially at high elevations and on sloped terrain. 

6. Choose the Right Size (How Big Should a Tiny Home Be?)

By building code standards, a “tiny house” is any dwelling under 400 square-feet, not including lofts. But in practice, “tiny” is relative. The right size really depends on how the home will be used, and who’s living in it.

If your tiny home is mobile, there are legal limitations to its size. Road-legal homes are usually limited to 8.5 feet wide, 30-60 feet long, and 13.5 feet tall to avoid special transport permits. Fixed homes can be larger. According to United Tiny Homes, the general guidelines on sizing is as follows: 

  • Solo living: 100–150 sq. ft. can accommodate a kitchenette, bathroom, and sleeping area—especially if you’re comfortable with open-plan efficiency.
  • Couples or roommates: 150–250 sq. ft. allows room for privacy and shared living, but smart layout and good storage are essential.

Families or guests: 300–400 sq. ft. supports multiple sleeping zones and more defined living areas—but often requires creative, flexible design to feel functional.

Tiny Home + Choose the Right Size (How Big Should a Tiny Home Be?)

7. Design with Functionality in Mind

There’s a classic design principle: form follows function. This is especially true In tiny house living, where every piece must earn its place.

Multi-use furniture and creative storage go a long way in making small spaces feel bigger. Think storage ottomans, sleeper sofas, and foldaway tables that pack in purpose without taking up too much room. Layout matters, too. Multi-height counters can double as prep space and workstations, and pocket doors save precious inches. Even stairs can do more, with built-in drawers or hidden closets underneath.

The best tiny homes prove that thoughtful design is both stylish and functional and with BuildLabs as your full-service design-build team, you get both without compromise.

8. Prioritize Energy Efficiency

A key driver of the tiny home movement is their smaller environmental footprint. By investing in energy-efficient systems and features, like those listed below, tiny home owners can gain long-term savings while minimizing their impact on the planet. 

  • Insulation: high quality insulation, such as BuildLabs’ Organic Cellulose Insulation, offers superior thermal resistance and air sealing, leading to lower heating and cooling costs over time. 
  • Heating and cooling: Ductless mini-split systems provide efficient and zone-specific heating and cooling, often outperforming traditional space heaters in energy savings. 
  • Solar readiness: Designing your tiny home to be solar-ready sets you up for the future, making it easy to plug into renewable energy when the time is right.

9. Plan for Utilities and Off-Grid Living

Understanding your utility needs is essential, especially if you're considering living off the grid, which means your home operates independently from public utilities like water, electricity, and sewage systems.

These decisions should happen early and address how you’ll power your home, access water, and manage waste. Off-grid setups often rely on solar panels, water storage tanks, and generators to stay functional. But even grid-connected homes can benefit from off-grid features. Composting toilets, for example, offer a low-maintenance, plumbing-free solution. Rainwater harvesting systems, when paired with basic filtration, can keep your taps flowing reliably, no matter where you are.

10. Maximize Storage Smartly

Though already touched on, optimizing storage is key in making sure your tiny home doesn’t feel like a glorified closet. Every void is an opportunity: under the bed, inside stairs, beneath seating, toe-kick drawers under cabinets, and more. Installing dividers, hooks, and pullout racks into these spaces helps keep things organized and easy to access.  In mobile tiny homes, or in those with a particularly small footprint, vertical storage is especially helpful in making a space feel expansive. A few well-placed floating shelves or wall-mounted cabinets keep the essentials close without taking up precious floor space. 

11. Think About Resale Value

While tiny homes aren’t always purchased with resale value in mind, thoughtful design can boost marketability should the time come to move on. Features like flexible layouts, high-end materials, and off-grid capabilities appeal to a broad range of buyers. Additionally, homes that can be easily relocated or modified for different uses (like guest houses, rentals, or vacation properties) will hold their value better. 

That said, resale dynamics differ from traditional homes. Appreciation isn’t guaranteed, so it helps to build well, with both function and versatility in mind. 

12. Choose the Right Builder or DIY

Building a home (even a tiny one) is a major undertaking. It takes technical skills, time, and the ability to manage everything from permits to plumbing. 

According to TheTinyHouse.net, it takes roughly 800 hours to build the average tiny house. At 20 hours per week, that’s nearly a year of work – assuming nothing goes wrong. While it can be rewarding (and cheapert) to do it yourself, ask yourself the following questions before diving in: 

  • Do I realistically have the time?
  • Do I have the skills – or a plan to learn them? How? 
  • Am I ready to invest in the right tools and materials?
  • Who will I call when I get stuck? 
  • Can I trust that what I build will be safe?

If you’re short on time or confidence, hiring a professional builder like BuildLabs can save serious stress and ensure your home is safe, beautiful, and up to code. For those who want to stay hands-on, a hybrid approach – building the shell with a pro and finishing the interior yourself – might be the best of both worlds.

CTA: Unlock the Power of Tiny Homes by BuildLabs: Upgrade your real estate portfolio, property, and lifestyle with our tiny home plans and accessory dwelling units. See more here

Tiny Home + Choose the Right Builder or DIY

13. Safety and Insurance Considerations

Though small, a tiny home should never skimp on safety. Fire safety is critical: heating systems must be professionally installed, and smoke/CO2 detectors are non-negotiable. Use fire-rated materials and proper ventilation. Make exits easy to access and kept free from clutter.  Structural integrity matters too, especially for homes on wheels—secure framing, hurricane ties, and appropriate load distribution will keep things safe on the road and in storms.

Insurance is another hurdle. Traditional homeowners policies don’t always cover tiny homes, especially mobile ones. Fortunately, companies like Progressive now offer specialized coverage for tiny and manufactured homes (Progressive.com).

14. Future-Proof Your Tiny Home

Life changes. Your home should be ready to change with it. Smart planning upfront makes it easier to adapt your space later. Maybe that office nook becomes a nursery, or your gym-turned-studio eventually needs to accommodate aging parents. Consider pre-wiring for solar or tech upgrades, adding loft headroom for a future bedroom, or incorporating accessible features from the start. Designing with tomorrow in mind makes transitions smoother and your tiny home more sustainable over time.

Tiny Home + Future-Proof Your Tiny Home

15. Connect with the Tiny House Community

Often the most helpful resource in your tiny home journey is the community. Online forums, blogs, and social platforms are filled with real advice, honest insights, clever hacks, and encouragement. Meetups and festivals offer a chance to tour different layouts, ask questions, and connect with those already living the tiny house lifestyle. 

Better yet, consider joining a designated tiny house community. These purpose-built neighborhoods offer more than a legal place to park. They come with like-minded neighbors, shared amenities, and built-in support. It’s easier to thrive when you’re not going alone. 

CONCLUSION 

In a well-designed tiny home, every square foot works smarter. Whether it’s a private retreat, guest cottage, or full-time dwelling, success starts with planning ahead, understanding the landscape, and building with the right team.

BuildLabs brings a forward-thinking approach to modern living—combining precision factory construction, sustainable materials, and smart systems with unmatched attention to detail. We help you design a tiny home that not only works—but lives better.

Ready to see what’s possible? Contact BuildLabs or browse our tiny home portfolio to get started.

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