Sounds cozy, and enterprising too. Tiny houses are the vogue. Mine's too big! Anyway, if you want to raise mealworms, give it some thought (you already have) and just know there's no smell, really. If you keep it to a small container and clean out the frass now and then, you should be fine. I haven't had any problem with the old casings blowing around--depends on your situation, I guess. The worms and beetles themselves don't have an odor. It's either that or my nose is worn out.