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12th of October 2025 | By Sarah Johnstone
If you’re a landowner with unused space, a tiny home village is a low-risk, high-return way to generate ongoing income while maximising the value of your land.
By developing a small community of 5–10 tiny homes, you can run a scalable, flexible property business with lower approvals, minimal infrastructure costs, and multiple monetisation options—leasing, sales, or short-term rentals.
Tiny home villages let you unlock the hidden potential of your land while meeting growing demand for affordable, sustainable living in Australia.
A tiny home village is a small, planned community of multiple tiny homes, usually between 5 and 50 dwellings. Each resident has a private, self-contained home, while sharing community spaces and amenities.
Tiny home villages combine independent living with community connection, making them ideal for sustainable, nature-oriented lifestyles.
Residents can either lease or own their tiny homes, providing flexibility for different lifestyles.
While tiny home villages are common in the United States, they are emerging in Australia, driven by:
Government & not-for-profit initiatives for affordable housing
Private landowners with large properties looking into profitable, small-scale development options
The growing demand for sustainable and minimalist living
Our experience at Landmates, speaking with private landowners on large properties is they often find adding a single tiny home isn’t worth it, but developing tiny home “villages” of 5–10 homes can be a viable and profitable project.
Before starting a tiny home village, consider these key factors:
1. Land Requirements
2. Zoning and Planning
3. Utilities and Infrastructure
4. Financial Viability
5. Community Management
Step 1: Concept, Design, Approvals
Plan layout and shared facilities like kitchens, laundry, or recreation areas
Prioritize sustainability with solar power, water-saving measures, and eco-friendly designs
Step 2: Land Preparation
Clear and level building pads
Install roads, pathways, and fencing
Landscape for privacy and aesthetics
Step 3: Infrastructure Installation
Connect utilities and install communal facilities
Manage stormwater and drainage
Include fire safety and security infrastructure
Step 4: Resident Engagement
Decide if residents buy or lease their homes
Draft community agreements and guidelines
Roll out homes in stages to integrate residents smoothly
Zoning & Land Use
Confirm council zoning allows multi-dwelling or community housing
Apply for development approval (DA)
Building Approvals
Approval varies for permanent vs transportable homes
Environmental & Health Requirements
Conduct environmental impact assessments if the land is sensitive
Ensure sewage and waste systems meet health standards
Fire & Safety Compliance
Follow bushfire regulations (BAL ratings in Australia)
Include fire safety infrastructure: extinguishers, hydrants, and escape routes
Ongoing Compliance
Councils may require annual inspections for shared facilities
Maintain records of approvals, safety checks, and community agreements
Councils usually charge a base DA fee, plus an additional fee based on the number of dwellings or scale of development.
For a small village (5–10 homes), DA fees typically range from $2,000 to $10,000 depending on the council.
Larger developments (20+ homes) can cost $15,000+ in DA fees.
2. Planning Consultant / Architect
Many landowners hire a planning consultant or architect to prepare plans, lodge the DA, and liaise with council.
Fees vary by complexity, but $5,000–$15,000 is a reasonable estimate for a small village.
3. Engineering / Site Reports
Most councils require site plans, civil engineering plans, stormwater and drainage reports, and sometimes bushfire or environmental assessments.
Costs vary by site, but you can budget $2,000–$10,000 depending on land conditions.
4. Total Estimated DA Cost
For a small village (5–10 homes): roughly $10,000–$30,000
For a larger village (20–50 homes): $30,000–$60,000+
Tiny home villages are a high-return, small-scale property business for landowners.
Revenue Potential
Leasing Sites
Rent out sites to tenants who bring their own tiny homes.
Example: 10 sites × $300/week → $12,000/month or $144,000/year
Leasing Tiny Homes
Provide fully-serviced tiny homes for tenants to rent, generating higher income per unit.
Example: 10 tiny homes × $450/week → $18,000/month or $216,000/year
Hybrid Model
Combine land leasing, tiny home leasing, and sales to maximise cash flow.
Example: 5 leased sites + 5 leased tiny homes → $15,000/ month, $180,000/ year
Tiny home villages offer landowners a high-return, low-risk development opportunity:
Lower infrastructure costs – Tiny homes require smaller pads, roads, and utilities than standard residential developments, keeping upfront investment manageable.
Flexible monetisation options – Landowners can lease sites and tiny homes, sell sites or tiny homes or mix ownership and rental models to maximise cash flow.
Increase land value – Developing a tiny home village adds appeal, utility, and marketability to underutilised land.
Disclaimer: This is general information only and not legal advice. Please check with your local council for rules specific to your area.
