recreational vehicle

9 Things to Consider Before Retiring to a Tiny Home or RV

Carrie Kirby — Mon, 21 May 2018 08:00:26 +0000

Magazines and design blogs are full of stories of retirees downsizing to tiny homes to cut their expenses and responsibilities. With costs around $30,000 and monthly utilities as low as $15, some enthusiasts even say that trading a traditional home for a tiny house or RV allowed them to retire early. While the tiny house trend is pretty new, retiring to a life on the road in a recreational vehicle is an established tradition among retirees.

Should an RV or tiny house show be your first stop once your final day on the job is over? Not so fast. Committing to a major purchase immediately after retirement is rarely a good idea, and there are plenty of important things to consider first.

1. Will your tiny home be legal?

Federal codes as of 2018 state that a house must be at least 88 square feet, but many states have additional regulations. In areas of North Carolina, for example, you need at least 150 square feet, plus 100 square feet more for each additional resident.

2. What will you do with your stuff?

The average retiree has a lifetime's accumulation of possessions in their home: Gifts from children and grandchildren, collections, holiday decorations, kids' left-behind sports trophies. A tiny house or RV won't have room for any of that. You'll have to dramatically downsize, whether that means putting things in storage, giving them away, or having an estate sale.

3. What will the furnishings cost?

While you may be saving money on mortgage, utility, and property taxes with a tiny house or RV, don't forget that you probably won't be able to reuse any of the furniture from your previous home. You'll have to pay for built-in or custom-built furniture and appliances. (See also: 5 Unexpected Costs of Living in a Tiny House)

4. Will you be able to age in the home?

RVs and tiny houses are often perched on wheels or raised above ground. You may need to climb a ladder to reach your bed every night. What will happen if you end up using a cane or wheelchair? Will you be able to retrofit your tiny home or RV to make it accessible? I came across one retiree who had a rock-climbing harness modified to lift her into her loft every night; I can't help wondering how much she likes that setup if she has to use the bathroom at 2 a.m.

5. How will this affect family traditions?

If you hold a big Thanksgiving dinner every year in your regular home, don't imagine you'll continue the tradition in your tiny home or RV — at least not in the same way. These pocket-size residences have no entertaining space, and their kitchens don't facilitate cooking for a crowd. What will happen to the events you used to host? Will you invite loved ones to camp near you and eat turkey at a picnic table? Or will an adult child take over hosting?

6. Where will you park?

My husband and I sometimes daydream about spending our retirement parking an RV in the driveways of our grown children, visiting one after the other throughout the year. If this is your plan, what do your children think of it? Do they have an off-street place for you to park? What about water and sewage hookups? If you want a more permanent place for your tiny home, you'll need to find out if your state has tiny house co-ops, or what the rent would be in a trailer park. You can find out more about zoning through the American Tiny House Association.

7. Will your relationship withstand the change?

If you and your spouse have both been working for decades, retirement itself will be a big change involving a lot more togetherness than before. Are you really ready to give up private spaces in your home to spend your days within a few feet of one another? If your spouse leaves his shoes on the floor, will it irritate you to no end that you can't even walk around them? Tiny homes and RVs typically have just one bathroom; are you ready to share?

8. Can you get a loan?

Some retirees are able to buy an RV or tiny home outright after selling their traditional home. But if you need a loan, you won't be able to take out a standard mortgage on a recreational vehicle. You'll need an RV loan, and since RVs are considered a luxury item, you'll need excellent credit to qualify. With a tiny house, you'll need either an RV loan or a personal loan. (See also: 3 Ways to Finance a Tiny House)

9. Which should you get, a tiny house or an RV?

Some people wonder why tiny houses cost more than RVs. Is it just because they're cute and trendy? Actually, there is a substantial reason: A good tiny house should be durable enough for everyday use, while RVs are built for vacation use, and tend to fall apart faster.

A word of advice: Try before you buy

Whether you think a tiny house or an RV is your ideal future home, you should rent at least one before you jump in and buy. Weekending in various styles of tiny homes and/or RVs is a good start, but remember that vacation life is always easier and more fun than everyday life. If you are serious about making the lifestyle leap, consider packing up and moving to a rented tiny home or RV for a substantial amount of time, like six months or a year, before you start shopping in earnest.

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This article is from Carrie Kirby of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Simple Ways to Live Rent-Free

Mikey Rox — Mon, 16 Mar 2015 08:00:06 +0000

We all need a roof over our heads and a place to sleep at night. Living with mom and dad is an obvious way to live rent-free, but you might prefer your privacy and independence. Fortunately, there are other tricks to score free rent that don't involve getting help from your folks. Here are five of them.

1. Work With an Accommodations Company

Contact hostels or private hotels and negotiate free rent in exchange for working for them on a part- or full-time basis. Some larger chains won't agree to this arrangement, but it doesn't hurt to ask. If a hotel or hostel has vacancies, or if it's understaffed and looking for ways to cut costs, the manager may consider your proposal. You can work in a variety of roles depending on your skill set, ranging from housekeeping to administrative tasks.

2. Home Share With an Elderly Person

Some elderly people live alone, and because of their age or health, they get behind on housework and home maintenance. If you have the skills and time, offer to home share with an elderly person on a temporary basis. In exchange for free rent, you agree to tasks such as cleaning, cooking, running errands, or handling repairs and maintenance. It's a win-win, since you provide your elderly roommate with companionship and assistance around the house, while you save money toward your financial goals. If I were actively seeking rent-free accommodation, this is totally a situation I'd pursue. I love elderly folks, and elderly folks love me. We'd watch our soaps, make fresh sandwiches for lunch, take afternoon naps, and get all gussied up for church bingo. Sounds like my idea of paradise.

3. Live in Your Van or RV

It might get a little cramped inside, but if you're serious about saving money for whatever reason, living in your van or RV for several months to a year (or longer) can really build your savings. This is especially true if you can park the vehicle on a friend or relative's property for free. Almost all RVs are equipped with small kitchens and bathrooms, so it's easier to be self-sufficient. On the other hand, if you live in a van, you'll need to borrow a friend or relative's kitchen or bathroom, unless you're planning to eat out for every meal or shower at the gym before work.

4. House-Sit for Free Rent

Some people are nervous about leaving their home and pets for days while out of town, so they ask a friend or relative to house-sit or check on the property. But what you may not realize is that some career house-sitters don't pay a dime for rent.

"House-sitting in return for a free retreat is growing in its popularity as more and more home and pet owners enjoy having the freedom to choose their sitter and having peace of mind that their fur family are kept in their own environment," says Rachel Martin, co-founder of TrustedHousesitters.com.

You might not receive compensation for house-sitting, so you'll need an income source to cover other monthly expenses such as food, transportation, entertainment, and so on. However, it's a fair trade-off, considering you're able to stay in someone's home without paying rent or utilities.

5. Find a Job That Includes Accommodations

This is similar — but not identical — to my first suggestion. If you have the appropriate skills, look into employment opportunities that include free accommodations. You can work as a live-in nanny for a family who needs assistance caring for their children. Some boarding schools employ full-time resident advisors who live inside dormitories to supervise students. If you have experience in property management, some apartment complexes give employee rent discounts, and apartment managers can often even live in a unit for free. (Heck, I wouldn't mind being a modern day Mr. Furley.)

Have you legitimately lived rent-free? What did you do? Tell us your story in comments!

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This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Living in an RV Full-Time: What You Need to Know

Mikey Rox — Wed, 20 Mar 2013 09:48:39 +0000

Thinking about living the life of a nomad? Want to brave the open road in an RV? There’s a lot to love about throwing caution to the wind and exploring the world on wheels, but it’s not without its own set of complications. Before you put your house up for sale and pawn off all your worldly possessions for a mobile existence, take this guide to living in an RV into consideration. (See also: How to Travel Full-Time for $17,000 a Year (or Less!))

1. An RV May Not Be Cheaper Than Traditional Housing

Think the only costs you’ll incur living in an RV is the monthly loan payment and gas? Think again.

While RV living can be less expensive than a home mortgage and the regular maintenance costs that are associated with home ownership overall, there are plenty of other costs to consider. In addition to the loan payment (unless you have the cash to buy it outright) and fuel (gas ain’t cheap these days, y’all), you’ll need to pay for insurance, site rentals if you plan to stay in an RV park (which can run $300 to $500 a month), propane and electricity (which are available at RV rental sites for an additional fee), and maintenance. Considering these costs, you’ll still be paying about the same per month as you would living in a small apartment.

2. The RV Will Require Much More Gas Than a Car

Many factors play into the amount of fuel consumed by an RV — the weight of the vehicle, engine size, fuel, driving habits — but even the most frugally minded RVers can expect to pay a pretty penny keeping the RV running. Smaller RVs get about 10-15 mpg while larger RVs come in at about 6-13 mpg. Most regular RVs hold between 40 and 85 gallons of gas (depending its class), which translates to between $148.12 and $314.75 per tank, based on the current average regular unleaded gas price of $3.70.

3. RV Insurance Is Not Regular Auto Insurance

Because you’ll being using your RV as a mobile home, insurance considerations are different than those associated with a regular vehicle. A specialized policy may require you to cover things like total loss replacement, replacement cost of personal belongings, full-timer liability, campsite liability, emergency expenses, medium-duty tow trucks, all of which will rack up that insurance bill quickly.

4. Can You Live Without Wi-Fi and Phone Service?

While many modern RV parks and campsites have Internet access on-site, Wi-Fi may not be an option. And if you’re in a remote area, you can probably forget about cell phone service, too. You’ll be able to get online from time to time, but it may be days or even weeks between access availability. So you have to ask yourself, can you live a life without being connected 24/7? Something to ponder before embarking.

5. Where Does the Mail Carrier Deliver Your Mail?

If you’re not staying in one place for more than a couple weeks, how will you get your mail? You can give your personal contacts the address of the park in which you’re staying if you plan to stay in a park, but it’s not feasible to expect your bills and other important mail to arrive at each of your destinations. Thus you’ll have to cancel most of your mail and set up online bill pay so you don’t get behind on payments because you didn’t receive them. Out of sight, out of mind is an easy way to forget about your obligations, but it’ll catch up with you in a bad way eventually.

6. You Have to Drain the Sewage Yourself

One of the great things about RV traveling is that the vehicle is self-contained. You can make meals in it, you can sleep comfortably in it, and you can do your 1s and 2s in it without having to pull into a rest stop or fast-food joint. Your 1s and 2s have to go somewhere though, and that somewhere is in a septic tank attached to the underside of the vehicle that will need to be emptied — and that can get messy. If you’ve got a weak stomach, definitely think hard about this necessary evil.

7. Can You Manage All the Other Stuff, Too?

RV living isn’t just driving from one location to the next, parking, and propping your feet up in nomadic bliss. There are lots of little things to remember, such as checking the battery water level monthly, lowering one corner of your awning to permit easier draining when there’s precipitation, and stocking up on rectangle storage boxes so you make efficient use of limited space. Once you arrive at the RV park, there's lots more to do, starting at the front office (requesting park maps, asking about discounts, and inquiring about Internet service), and then locating your RV space and setting up, which includes deploying decks and other heavy external features of the RV, connecting electricity, turning on water pumps, and raising roof-mounted accessories, among a host of other duties.

8. You’ll Need to Earn Money

Unless you’re embarking on your RV existence with a bank account full of money, you’ll need to work along the way, so you can ensure that there’s a consistent cash flow in case of emergencies, which, in an RV, can be quite costly. If you have the luxury of working remotely in your normal life, that’s still an option while living in an RV, but chances are you’ll need at least somewhat consistent Internet access. Otherwise you’ll have to find new ways to make money — helping out at the RV park, finding odd jobs on Craigslist, and other one-off projects — to bring in dough on the regular.

RV living isn't for everyone — as you can see, there’s a lot to it. Are you considering, or have you made, the transition from Average Joe to Road Warrior? Tell us about your experience in comments.

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This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: