A United Dwelling model home.United Dwelling
A California startup wants to build tiny homes in your backyard, rent them out, and give you an extra source of income of upwards of $500 a month.
United Dwelling partners with local communities and homeowners to transform unused backyard space and garages into affordable, 369-square-foot tiny homes. They would then be rented out for between $1,300 and $2,100 to a tenant vetted in part by the homeowner.
The company was founded by Steven Dietz, formerly of Upfront Ventures, which backed the likes of PetSmart and Ulta Beauty. United Dwelling just raised $10 million in a Series B funding round led by Alpha Edison with participation from Lightspeed Ventures, bringing its total funding amount to $12.2 million, according to Crunchbase.
The capital will in part be put towards the installation of more than 150 units in Southern California by the end of the year and 1,500 more by the end of 2021, as long as COVID-19 shutdown restrictions allow construction to move forward.
Here's what the tiny home looks like.
The state of California has been burdened by a housing and affordability crisis, which has exacerbated homelessness in the state.
In 2016 and 2019, legislation was passed to relax restrictions on building accessory dwelling units in the backyards of single-family homes.
Adding more affordable supply to the market could help in lowering housing costs.
There are more than 831,000 homes in Los Angeles County that accommodate those requirements, according to the company. The company has plans to eventually expand to the Bay Area and other locations.
It takes a mere six weeks from signing the lease to completion of a new home.
Source: Fast Company
Source: United Dwelling
Other companies striving toward a similar mission are Y Combinator alums Homestead and Rent the Backyard.