What Are Typical Returns for a 35 m² Tiny House Investment?

Introduction

Investment in small modular houses with an area of approximately 35 m² (377 sq ft) has become one of the hottest trends in the Polish tourist real estate market. In an era of growing interest in domestic tourism and the search for alternative forms of accommodation, compact vacation homes offer attractive returns on investment with a relatively low entry threshold. But is this really a profitable business? Let's look at specific numbers and market analyses.

Concrete Numbers: How Much Can You Earn from a 35 m² Tiny House?

Basic Financial Data According to Domki Marysia

One of the leading producers of small modular houses in Poland is Domki Marysia, which specializes in constructions up to 35 m². The company presents very specific data regarding the profitability of such investments:

Key Financial Parameters:

• Investment cost: from 220,000 PLN (~$55,000 USD) for the Marysia 01 model to 300,000 PLN (~$75,000 USD) for a fully equipped house
• Potential annual income: over 70,000 PLN (~$17,500 USD)
• Payback period: approximately 3-4 years
• Monthly income: over 6,000 PLN (~$1,500 USD) with the right rental strategy

This means that an investment of 300,000 PLN can generate an annual return of 23-25%, which is significantly higher than traditional forms of savings or long-term rental residential property investments.

Cost and Revenue Structure

Initial Costs:

• Modular house (developer standard): 220,000 - 266,000 PLN
• Finishing (painting, flooring, bathroom): 20,000 - 40,000 PLN
• Furnishing (furniture, appliances): 15,000 - 30,000 PLN
• Foundation: 10,000 - 25,000 PLN
• Utilities (connections): 15,000 - 40,000 PLN
• TOTAL: 280,000 - 400,000 PLN (~$70,000 - $100,000 USD)

Annual Operating Costs:

• Heating: 1,000 - 2,000 PLN per year (thanks to excellent insulation)
• Electricity: 1,500 - 3,000 PLN
• Water and sewage: 1,000 - 2,000 PLN
• Cleaning and maintenance: 5,000 - 10,000 PLN
• Marketing and booking portals: 3,000 - 6,000 PLN
• Insurance: 1,500 - 3,000 PLN
• TOTAL operating costs: 13,000 - 26,000 PLN per year (~$3,250 - $6,500 USD)

Profit Maximization Strategies

Difference in Capacity and Rental Price

According to Domki Marysia data, the difference between a 4-person and 6-person house can have fundamental significance for profitability:

• 4-person house: rental price 400-600 PLN/night in season
• 6-person house: rental price 700-900 PLN/night in season
• Difference: up to 300 PLN daily at peak season

Thanks to thoughtful design with a mezzanine, houses with an area of 35 m² can accommodate up to 6 people, which significantly increases earning potential. In practice, this means that choosing a larger model can shorten the investment payback period by up to a year.

Year-Round vs. Seasonal Rental

Seasonal Scenario (May-September, 150 days):

• Average occupancy: 70%
• Days rented: 105
• Average price: 600 PLN/night
• Revenue: 63,000 PLN
• Operating costs: 15,000 PLN
• Net profit: 48,000 PLN

Year-Round Scenario (365 days):

• Average occupancy: 50%
• Days rented: 180
• Average price: 450 PLN/night (lower off-season)
• Revenue: 81,000 PLN
• Operating costs: 20,000 PLN
• Net profit: 61,000 PLN

Year-round rental requires better insulation and heating, but modular houses from Domki Marysia are designed for year-round use, with excellent insulation and efficient heating.

Factors Affecting Profitability

1. Location

The best results are achieved by houses located in:

• Seaside towns: 80-90% occupancy in season
• Mountain resorts: 70-85% occupancy, often with good winter results
• By Masurian lakes: 75-85% in summer season
• Near tourist attractions: 60-75% year-round

2. Finishing Standard

Houses in higher standard allow for:

• Higher daily rates (by 20-40%)
• Better reviews and guest repeatability
• Higher occupancy in mid-season
• Possibility of positioning as "premium"

3. Marketing and Online Availability

Professional photos, presence on booking portals (Booking.com, Airbnb, local platforms) and own website can increase occupancy by 30-50%.

Comparison with Other Forms of Real Estate Investment

Tiny House 35 m² vs. Long-Term Rental Apartment

Tiny House:

• Initial investment: 300,000 PLN
• Annual return: 23-25%
• Payback time: 3-4 years
• Management: seasonal, intensive

50 m² Apartment (medium-sized city):

• Initial investment: 400,000 - 500,000 PLN
• Annual return: 4-6%
• Payback time: 15-20 years
• Management: stable, less demanding

Tiny House vs. Larger Vacation Home

Tiny House 35 m²:

• Lower entry cost
• Easier construction (often notification instead of permit)
• Lower operating costs
• Location flexibility
• Faster implementation (2-3 months)
• Assembly in 4 days

Vacation Home 70+ m²:

• Higher daily rates possible
• Larger groups of guests
• Possibility of organizing events
• Higher costs for everything

House Complexes – Business at Scale

Domki Marysia points to a particularly interesting business model: creating complexes of several houses with an area of 35 m². Such a strategy offers:

Economies of Scale:

• Lower unit costs when purchasing multiple houses
• Common infrastructure (parking, playground, reception)
• Ability to serve larger groups and events
• Professional resort image
• Better search engine results

Sample Calculation for 5 Houses:

• Investment: 1,500,000 PLN (5 x 300,000)
• Annual revenue: 350,000 - 400,000 PLN
• Operating costs: 100,000 - 130,000 PLN
• Net profit: 220,000 - 300,000 PLN per year
• Return on investment: 14-20% annually
• Payback period: 5-7 years

Modular Technology as a Competitive Advantage

Advantages of Domki Marysia Modular Technology:

Implementation Speed:

• Factory production: 6-8 weeks
• On-site assembly: 4 days
• Total time from order to delivery: 2-3 months

Quality and Predictability:

• Production in controlled factory conditions
• Scandinavian C24 wood, dried to 15-18% moisture content
• 10-year warranty on wooden structure
• No surprising additional costs

Energy Efficiency:

• Excellent insulation
• Compact form minimizes heat loss
• Low bills: 1,000 - 2,000 PLN per year for heating
• Possibility of installing renewable energy sources

Available Financing in 2025

It's worth noting that investment in vacation houses can be partially financed from various support programs:

LEADER Program (2024-2027)

• Funding: up to 500,000 PLN
• Cost coverage: up to 85%
• Purpose: development of agrotourism and rural tourism

Local Action Groups (LGD)

• Funding: up to 150,000 PLN
• Cost coverage: up to 65-80%
• Purpose: construction, equipment, promotion

District Labor Office (for unemployed persons)

• Funding: up to 54,000 PLN
• Purpose: starting a business
• Conditions: running the business for 12 months

PFRON (for people with disabilities)

• Funding: up to 134,000 PLN
• Purpose: starting tourism activities

Thanks to funding, the actual equity contribution can be significantly reduced, which improves return on investment indicators.

Tax Optimization

Income from renting vacation houses can be taxed in several ways:

Lump Sum on Recorded Income

• Rate: 8.5% for income up to 100,000 PLN, then 12.5%
• Simplest form
• No possibility of deducting costs

Business Activity – Tax Scale

• Possibility to deduct all costs
• Rates: 12% and 32%
• Greater flexibility

Business Activity – Linear Tax

• Rate: 19%
• For higher incomes

Example: with annual income of 80,000 PLN and costs of 20,000 PLN:

• Lump sum 8.5%: 6,800 PLN tax
• Tax scale (12%): 7,200 PLN tax (at 60,000 PLN income)
• Linear tax (19%): 11,400 PLN tax

Challenges and Risks

Seasonality

In many locations, 70-80% of annual income is concentrated in the May-September period. A year-round rental strategy requires:

• Excellent thermal insulation
• Efficient heating system
• Off-season attractions
• Appropriate marketing strategy

Competition

Growing popularity of short-term rentals means greater competition. Standing out requires:

• Exceptional location
• High standard
• Excellent reviews
• Unique features (jacuzzi, sauna, view)

Management

Short-term rental involves:

• Frequent cleaning and preparation
• Guest communication
• Reservations and payments
• Maintenance and repairs

Many people use management companies, which cost 15-25% of revenue, but significantly simplify operations.

Case Studies – Real Examples

Case 1: House by the Baltic Sea

• Location: 5 km from popular beach
• Model: Marysia 07 (42 m², 6 places)
• Investment: 320,000 PLN
• Annual occupancy: 55%
• Annual revenue: 75,000 PLN
• Costs: 22,000 PLN
• Net profit: 53,000 PLN
• ROI: 16.5%
• Payback period: 6 years

Case 2: House in the Beskid Mountains

• Location: mountain village with good infrastructure
• Model: Marysia 01 (35 m², 4 places)
• Investment: 280,000 PLN
• Annual occupancy: 48%
• Annual revenue: 58,000 PLN
• Costs: 19,000 PLN
• Net profit: 39,000 PLN
• ROI: 14%
• Payback period: 7 years

Case 3: Complex of 3 Houses in Masuria

• Location: lakeside plot
• Investment: 950,000 PLN
• Annual occupancy: 62%
• Annual revenue: 195,000 PLN
• Costs: 75,000 PLN
• Net profit: 120,000 PLN
• ROI: 12.6%
• Payback period: 8 years

Step by Step: How to Implement the Investment

Planning Phase (1-2 months)

1. Location selection and plot purchase
2. Analysis of local regulations
3. House model and manufacturer selection
4. Business plan preparation
5. Securing financing

Implementation Phase (2-3 months)

1. Documentation preparation (notification/permit)
2. Foundation preparation
3. House production in factory
4. Transport and assembly (4 days)
5. Utility connections

Finishing Phase (1-2 months)

1. Wall painting
2. Flooring installation
3. Bathroom equipment
4. Furniture and appliances installation
5. Interior design

Launch Phase (1 month)

1. Photo session
2. Business registration
3. Creating profiles on portals
4. Local marketing
5. First guests

Market Forecasts for 2025-2030

The short-term rental market in Poland continues to grow:

• Growing interest in domestic tourism: +15% annually
• Rising hotel prices increase popularity of houses
• Development of booking platforms facilitates rental
• Slow life trend and nature recreation
• Growing incomes of Poles

Projected Trends:

• Continued growth in average rental prices by 5-8% annually
• Greater competition, but also a larger market
• Growing guest requirements for standards
• Eco and energy-efficient solutions will be popular
• Increasing importance of year-round offerings

Practical Tips for Investors

To Do Before Investment:

✓ Check the spatial development plan carefully ✓ Talk to owners of similar properties in the area ✓ Analyze seasonality and competition ✓ Calculate realistic occupancy (don't assume 100%) ✓ Reserve budget for unexpected expenses (10-15%) ✓ Check funding opportunities

Mistakes to Avoid:

✗ Underestimating operating costs ✗ Overly optimistic occupancy forecasts ✗ Saving on finishing quality ✗ Ignoring marketing and reviews ✗ No plan for dead season ✗ Not preparing for management

Summary: Is It Worth Investing?

Investment in a 35 m² tiny house can be very profitable, offering return on investment at 14-25% annually and payback period of 3-7 years, which significantly exceeds traditional forms of real estate investment. Key success factors are:

1. Good location – close to tourist attractions
2. High standard – guests pay for comfort
3. Efficient management – maximizing occupancy
4. Marketing – professional online presence
5. Construction quality – low operating costs

Modular houses from manufacturers such as Domki Marysia offer additional advantages:

• Fast implementation (4 days assembly)
• Predictable costs
• High energy efficiency
• Long warranties
• Expansion possibility

For people with capital of 300,000 - 400,000 PLN (~$75,000 - $100,000 USD) and looking for an alternative to traditional deposits or bonds, investing in a tiny house for tourist rental can be an attractive option. However, it requires commitment, a thoughtful strategy and willingness to actively manage the business.

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Frequently Asked Questions (FAQ)

1. Is a 35 m² house enough for a family with children?

Answer: Yes, with the right design with a mezzanine, a 35 m² house can accommodate up to 6 people. Domki Marysia designs interiors with maximum use of vertical space – the mezzanine can serve as an additional bedroom or space for children. The key is thoughtful placement of functions and multifunctional furniture.

2. What is the realistic payback period for a tiny house investment?

Answer: With a good location and efficient management, the payback period is 3-7 years. For the best locations (popular seaside or mountain resorts), this period may be shorter than 4 years. In less attractive places, it may extend to 8-10 years. Achieving high occupancy and appropriate daily rates is crucial.

3. What are the actual maintenance costs of a 35 m² house per year?

Answer: Annual operating costs range from 13,000 to 26,000 PLN and include:

• Heating: 1,000 - 2,000 PLN (thanks to excellent insulation)
• Energy: 1,500 - 3,000 PLN
• Water: 1,000 - 2,000 PLN
• Cleaning: 5,000 - 10,000 PLN
• Marketing: 3,000 - 6,000 PLN
• Insurance: 1,500 - 3,000 PLN

4. Is a 35 m² house suitable for year-round living?

Answer: Absolutely! Domki Marysia builds year-round houses regardless of size. Excellent insulation, high-quality materials and modern heating systems make a 35 m² house comfortable year-round, even in the Polish climate. Low heating costs (1,000 - 2,000 PLN per year) confirm energy efficiency.

5. How long does it take to build a 35 m² modular house?

Answer: The entire process from signing the contract to receiving the finished house takes 2-3 months. Most importantly, on-site assembly takes only 4 days! This is a huge difference compared to traditional construction, where completion can take a year or longer. The speed comes from prefabrication – the house is built in controlled factory conditions.

6. Can I expand a 35 m² house in the future?

Answer: Yes, modular technology enables future expansion. Domki Marysia designs houses with potential expansion in mind, so you can add more modules and increase usable area. This is a flexible solution that grows with your needs or business development.

7. What documents are needed to set up a 35 m² house?

Answer: In most cases, a construction notification is sufficient, which significantly simplifies the administrative process. A building permit is not required, which means faster investment start. Domki Marysia offers help with all formalities – from preparing documentation to submitting appropriate applications.

8. How much does a complete, ready-to-live-in 35 m² house cost?

Answer: The total cost of a "turnkey" investment is 280,000 - 400,000 PLN (~$70,000 - $100,000 USD), including:

• House in developer standard: 220,000 - 266,000 PLN
• Finishing: 20,000 - 40,000 PLN
• Furnishing: 15,000 - 30,000 PLN
• Foundation: 10,000 - 25,000 PLN
• Utilities: 15,000 - 40,000 PLN

The Marysia 01 model starts at 220,000 PLN, and Marysia 07 from 266,000 PLN in developer standard.

9. Can I get a grant for building a vacation house?

Answer: Yes! In 2025, many funding programs are available:

• LEADER Program: up to 500,000 PLN (coverage up to 85% of costs)
• LGD: up to 150,000 PLN (coverage up to 65-80%)
• District Labor Office for unemployed: up to 54,000 PLN
• PFRON: up to 134,000 PLN

Thanks to grants, you can significantly reduce equity contribution and improve investment profitability. Preparing a solid business plan and meeting program requirements is crucial.

10. What location ensures the best return on investment?

Answer: The best results are achieved by houses in:

1. Seaside locations: 80-90% occupancy in season, high rates
2. Mountain resorts: 70-85% occupancy, good winter and summer results
3. By Masurian lakes: 75-85% in summer season
4. Near tourist attractions: 60-75% year-round

Most important location features: proximity to attractions, good access, beautiful natural surroundings.

11. Does renting a house require running a business?

Answer: It depends on the scale and method of rental. Occasional rental of private property can be taxed with a lump sum on recorded income (8.5%). However, systematic rental, especially of several properties, usually requires business registration. It's best to consult with a tax advisor to choose the most beneficial form of taxation.

12. What are the biggest challenges in short-term rental?

Answer: Main challenges are:

• Seasonality: 70-80% of income in May-September
• Management: frequent cleaning, guest communication, reservations
• Competition: growing number of offers requires standing out
• Maintenance: greater wear than with long-term rental
• Reviews: crucial for success, difficult to control

The solution may be a management company (15-25% of revenue) or your own service system.

13. Can a 35 m² house also be used for personal vacation?

Answer: Of course! Many owners reserve the house for themselves for a few weeks a year, combining pleasure with profit. The rest of the time the property generates rental income. This is a popular strategy that allows you to have your own vacation spot and simultaneously earn money most of the year.

14. What is the difference between a 4-person and 6-person house in terms of earnings?

Answer: The difference is significant! A 6-person house (with mezzanine) can cost 300 PLN more per day in season than a 4-person house. In practice, this means:

• 4-person house: 400-600 PLN/night → ~50,000 PLN per year
• 6-person house: 700-900 PLN/night → ~70,000 PLN per year
• Additional income: 15,000 - 20,000 PLN per year

Investment in a larger model pays back faster, often a year earlier.

15. Is modular technology as durable as traditional?

Answer: Yes, and often even more so! Domki Marysia offers:

• 10-year warranty on wooden structure
• 5 years on all production materials
• Production in controlled factory conditions (better quality)
• Scandinavian C24 wood dried to 15-18% moisture
• No problems with fungi and insects

Precise prefabrication often provides better quality than traditional construction dependent on weather and variable quality of construction crew work.

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Sources:

• Domki Marysia - official website and information materials
• Analysis of the short-term rental market in Poland 2025
• Rural tourism financing programs 2025
• Own calculations and case studies

Note: All prices are given in Polish Zloty (PLN). For reference: 1 PLN ≈ 0.25 USD ≈ 0.23 EUR (October 2025). The article focuses on the Polish market but the principles and investment metrics can be applied to similar tiny house investments in other European markets.