Happy Birthday Ruru!
It has been impressive three years for ruru tiny homes, from selling the first unit in February 2021 to now running two yards in the South and North Island, with more than 130 units delivered nationwide to date.
Grab a cuppa and read an interview with Fran Huelsmeyer, Director of ruru tiny homes.
Good day, Fran! It's a pleasure to sit down with you today to discuss the remarkable journey of Ruru Tiny Homes as you celebrate your companies third birthday. What a journey it has been!
Thank you! It's a pleasure to be here and reflect on the incredible growth and success we've experienced over the past three years, and the rollercoaster that came with it.
Let's start at the beginning. In February 2021, Ruru Tiny Homes presented its first finished Tiny Home on Wheels for sale. Could you take us back to that moment and share your thoughts and emotions as you showcased your creation to the world?
It was an exhilarating moment, to say the least. We had poured our hearts and souls into that first Tiny Home, which we built right in the garage of our own home. The response we received was beyond our expectations – we initially only wanted to rent it out as long term rental or an AirBNB option, but the demand we met was incredible. It was clear that we had tapped into something significant, something that resonated with people looking for alternative, affordable, and high-quality housing solutions. Within only 10 weeks of advertising the unit for sale (which sold in 2 days!) we received 12 more orders. It still feels like an earthquake, especially after our former accommodation business had decimated with the borders closed due to COVID19.
The growth of Ruru Tiny Homes has been nothing short of phenomenal, with that crazy amount of orders flooding in. How did you manage to handle this sudden surge in demand, and what do you think contributed to the overwhelming response?
It was certainly a challenging period, but it was also an exciting time for us. I often refer to the feeling of being tied in front of a bullet train, trying to steer, and forecast, and plan, and be safe at the same time. We quickly realised that the demand was driven by a need for alternative housing solutions especially in our area in the Top of the South Island, that were both affordable and of high quality. Our Tiny Homes on Wheels provided a unique answer to this demand. We expanded our team quickly to cater for the orders. This was, in hindsight, one of the most stressful factors - managing Human Resources, Demand, Supply, and Efficiency whilst growing and stabilising a startup business. Within the first 2 years we moved from our garage, where we built the first units, opened branches in Motueka and Whangarei, and worked tirelessly to meet the growing orders.
Having three, now four, children whilst trying to do all of this has demanded a significant toll on stress levels and family life - 70 hour weeks weren’t rate. Working at night, attending viewings with a baby on my arm, being on the phone while carrying a sleeping toddler, and being always available even whilst watching your kids soccer plays - this is all part of the growth and behind the scenes of running a business. However, the response, and the clients feedback, and the reassurance of doing something good for the community paid back a lot of this. The speed of our growth highlighted the urgent need for such housing options.
It has been a massive learning as well for us, to narrow down what staffing levels we need, how much forecasting is required to have secure supply chains, creating a reliable, confident and trusting relationship with suppliers and contractors throughout. Finding the right people to work with, internally and externally, and creating a positive and safe work environment needed a lot of attention and also attention to detail, to make sure we do things the ruru way: doing it right. Our key is to look at every question or problem with integrity, aiming to do the right thing at all times.
Ruru Tiny Homes has been a pioneer in providing residential affordable housing without the need to own land. By now you have helped about 80-90 clients allover New Zealand into shared lease agreements, without charging for this service. Can you elaborate on how Tiny Homes on Wheels address this particular issue and what advantages they offer?
Absolutely. One of the key advantages of Tiny Homes on Wheels is that they are building consent-free, if they remain moveable and are non-permanently fixed to the property. This means that individuals can place their Tiny Homes on rented land without the need for complicated and time-consuming approval processes. Also, if the tiny house owner leases the land, they do not necessarily want or can invest into someone else’s land, which is fair enough. It's also a game-changer for those who want the flexibility to live in different locations without the commitment of owning land. Whether you're leasing or just exploring different areas, Tiny Homes provide a housing solution that isn't tied to traditional constraints. However, the building consent side of things makes it a lot easier, whilst the resource consent side of things needs to be respected and reviewed for each case. This is an individual approach as every property has different zonings, and allowances, and pre- or existing consents, and each Council has different regulations and rules in this regard. Therefore, we offer a free Council Consultation for all our clients, to make sure they’re safely informed and know the ins and outs of Tiny Home living on leased (or owned) land.
Moving on to the second advantage, you've mentioned the top quality on a small footprint, easy to maintain, debt-free living. How do Tiny Homes on Wheels offer high-quality living within a compact space, and what impact does this have on the lifestyle of the occupants?
The design of our Tiny Homes is meticulously thought out to maximise functionality within a small footprint. Every square centimetre is utilised efficiently to create the maximum interior volume, and the focus is on high-quality materials and craftsmanship. The result is a home that not only looks and feels inviting but is also easy to maintain. There is so much space you won’t know how to fill it, once you’ve moved and downsized. Living in a Tiny Home often means simplifying one's life – fewer possessions, lower maintenance costs, and a reduced environmental footprint. It's a debt-free living option that aligns with the desire for a more sustainable and minimalist lifestyle. The best reassurance we’re on the right track is the moment when future clients come visit for the first time, and every single time they say ‘whow, this is not tiny, this is massive! I thought 3m width would not be enough for me but this is plenty of space!’
The third advantage you mentioned is the potential for high-end, fixed-price, certain delivery investments for Airbnb or rentals with an impressive return on investment (ROI). How have you observed Tiny Homes on Wheels becoming an attractive investment option, and what kind of ROI are we talking about?
Tiny Homes on Wheels offer a unique investment opportunity, especially in the realm of short-term rentals like Airbnb. The fixed-price nature of our Tiny Homes provides investors with certainty, and the high-end finishes make them attractive to renters seeking a unique and comfortable experience. Many individuals are capitalising on the trend of experiential living, and Tiny Homes cater perfectly to this demand. The return on investment can be impressive, given the lower initial investment compared to traditional housing. It's a win-win for investors and those seeking temporary, yet high-quality, accommodation. The exact ROI is hard to name, generally spoken, as it will strongly depend on where your AirBNB is, how much that area is in demand, what else you offer (e.g. outdoor bathtub, or beachfront, or multiple units for groups etc) and what your service is like (breakfast, cleaning, etc). However, as most Tiny AirBNBs are being put on land that is already owned, and do not require lengthy and costly consent processes in most cases, there is a lot of money saved before the first guest arrives, and due to the turnkey ready nature of Tiny Homes on Wheels the time between delivery and first check-in can be significantly short, so instant income. We have some solid feedback from clients who are renting out their units for $350-400 per night, depending on the occupancy and amount of people.
Looking back over the past three years, what have been the most significant challenges you've faced, and how have you overcome them?
The challenges have been diverse, from scaling up production to navigating regulatory landscapes. One of the key challenges was maintaining the efficiency of our Tiny Homes while meeting the skyrocketing demand and growth, as lots of new people joined the company in a very short time, needed to be streamlined and organised, so the costs and quality were the main focus to keep under control. We invested heavily in training our teams for quality and health and safety purposes, ensuring that the expansion didn't compromise the integrity of our products. Additionally, working with local authorities to promote the benefits of Tiny Homes and address any concerns about zoning or building codes was and remains crucial. It required open communication and collaboration to demonstrate the positive impact Tiny Homes can have on housing accessibility. Unfortunately, there is a lot of misunderstandings in the industry, especially on local government side, about the legalities around tiny homes. We are lucky to have extremely well trained legal support, also know as my husband, within our company which has helped to explain the deficits in understanding to many in the past. Bottom line: Every time there was a matter of concern for any of our clients in regards to consenting or Council Communication, we were able to speak on the clients behalf and sort things - always in the best interest and outcome of our clients. I am extremely proud to say that none of our clients ever encountered issues with Council that could have not been sorted.
As Ruru Tiny Homes continues to grow, what can we expect in the future? Are there any exciting developments or innovations on the horizon?
We're continuously pushing the boundaries of what's possible with Tiny Homes. Our current focus is on innovation in design, incorporating sustainable practices, and improving efficiency. We're also looking at ways to further streamline the process of placing Tiny Homes on Wheels on various types of land, making it even easier for people to embrace this housing solution. Ruru is currently working with developers of potential tiny home villages all over the country to explore options of either leased or owned land with a tiny home. Additionally, we're exploring partnerships and collaborations to bring Tiny Homes to a wider audience, including potential community projects. We focus on this especially in 2024 as the overall economy has slowed down, giving uns some much needed breathing space, to stop further growth for now and focus on these key elements.
Lastly, as we celebrate the third birthday of Ruru Tiny Homes, what message would you like to share with your customers, supporters, and those considering a Tiny Home lifestyle?
I would like to express my deepest gratitude to our customers, supporters, and the entire Ruru Tiny Homes community. Your belief in our vision and your enthusiasm for Tiny Homes have been the driving force behind our success. As we enter this new phase of growth and innovation, we invite everyone to join us on this journey. Whether you're seeking an affordable and sustainable living solution or exploring Tiny Homes as an investment opportunity, we're here to provide a unique and fulfilling experience. Thank you for being a part of the Ruru Tiny Homes family!
Thank you, Fran, for sharing your insights and reflections on the incredible journey of Ruru Tiny Homes. Here's to many more years of success and innovation!
Thank you! It's been a pleasure.
Cheers to the future of affordable and high-quality living with Ruru Tiny Homes!