My friend has a hookup with heat treated wood, so I snatched some up. I found the easiest way to break them down is just to use a jigsaw to cut the skinny boards off.
Pallets are wonderful! They seem to be everywhere and their soft wood makes them easy to cut and work with. I made a insect house for a quick project to add a little little whimsy to the garden.
The width makes them perfect for skinny tall houses like this one...
I like to offset the floor a bit higher than the bottom of the sides to make opening the houses for cleaning easier.
I drilled in a LOT of holes and used a jigsaw to cut between the holes to make slats.
Here's the completed bug house! I designed it for predatory insects to stick around and attack any of my garden pests.
As I mentioned, it opens for easy cleaning between seasons. As this is only holding bugs and not birds, I didn't even bother with a bottom nail to keep it closed.