Our building was across the street from campus and offered tiny studios.  

There is multiple holes in the walls ranging from tiny nail holes to door handles being pushed through the walls. one set of mini blinds were destroyedThe dead bolt lock set is brokenThe dogs have scratched the inside and outside of the door and trim as well as chewing the cord that powers the back porch light, and has dug multiple holes in back yard against the foundation.

It would be easier to find roommates as tenants.And by the way, I bet you could get a full kitchen in the tiny studio.  

Can you rent it out separately as a tiny house?

Yes it can be a tiny bit more time to find a qualified tenant, but I feel they are a more qualified tenant and stay longer.

I record the few checks I get manually in the system, and when I deposit them, I use the ATM, so I get a tiny image of the check printed on my receipt.

I managed a 26 unit building that had been built in 1906 and converted to apartments during WWII in Silicon Valley, and most of them were tiny studios.The great thing about renting out smaller units, is you have less tenants - and less kids.  

Even tiny ones.No references from relatives or hotels allowed.No evictions.No current collections or judgements.  

Just one tiny example - the undergrads I had to kick out for noise and partying, had a party one night and someone stood on the toilet and attempted to pee out the window above the toilet - through the window screen.  

But, it was a cute 2/1 1930's place, but with a very tiny kitchen.