The Short Answer
The main risk is that you rely on one company. Tiny Assets Pte. Ltd. (Tiny Away) pays your monthly rental and buys your house back if you choose the buyback. What protects you is that the house stays your property, your hire agreement is a binding contract under Singapore law, and the company's track record, which you can check for yourself.
You Rely on the Company to Pay
Your monthly rental and the buyback are both paid by Tiny Away. If the company could not pay, both would be affected. The house remains your property at all times, and Tiny Away only has the right to possess and use it during the lease period. Big Tiny has operated since 2017 and has recorded positive EBITDA every year since FY18. Read our guide Is Big Tiny legit? and check the companies for yourself.
If a Monthly Payment Is Late or Missed
Your rental is paid on the 15th of every month, or the next business day if the 15th falls on a weekend or public holiday. If a payment is missed, you notify Tiny Away in writing so that our team can review and resolve the issue.
Events Outside Anyone's Control
Like most contracts, your agreement has a force majeure clause. If events beyond either side's control, such as a natural disaster or a pandemic, delay what the agreement requires, the time to perform is extended for as long as the delay lasts. During COVID-19, when hospitality around the world came to a halt, payments were paused after consulting owners, and every owner's lease was extended so they could complete their full 2- or 5-year lease period.
You Cannot Leave in the Middle of a Lease Period
Once a lease period starts, it runs for its full 2 or 5 years. You cannot end it early just because your plans change. If you think you may need the money sooner, choose the 2-year lease period so your next decision point comes earlier.
How the Buyback Is Paid
At the end of a lease period you can sell your house to the company at the Sale Price set out in your agreement. The sale completes the day after the lease period ends, and the company pays you within 90 days.
Insurance
The tiny houses are insured with QBE Insurance (Singapore) Pte Ltd, under cover that extends to Big Tiny's companies across the markets where it operates.
Currency
Your purchase, monthly rental and buyback are all in Singapore dollars, even when guests pay in Australian dollars or euros.
How to Check for Yourself
Ask for the hire agreement and read it before you sign. Search Big Tiny Pte Ltd (201705966D), Build Tiny Pte Ltd (201726159Z) and Tiny Assets Pte. Ltd. (201726158H) on ACRA's Bizfile. Read the owner reviews on Google. If you want advice on your own situation, speak to an independent lawyer or adviser.