Co-living spaces are an increasingly popular alternative for renters priced out of traditional rental housing as the rental market continues to evolve. Tenants seeking affordability, flexibility, and a preexisting sense of community are drawn to Co-living spaces. From young professionals and students to remote workers and city dwellers, renters are tempted to share living arrangements that provide cost savings and convenience.
Nevertheless, co-living arrangements grant opportunities and challenges for rental property owners and managers. Let’s take an in-depth look at the rise of co-living spaces, the primary factors for rental property owners and managers, and tactics for successfully marketing these exceptional properties.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that originated from the rise of housing startups presenting homes designed to be shared by five or more adult roommates. There are numerous variations of these co-living spaces, from single-family homes renovated to accommodate non-related residents to floors in high-rise buildings converted into dormitory-style lodging and so forth. In comprehensive terms, co-living can refer to anything from master-planned communities to simply living with roommates.
A number of factors are pushing the increase in popularity of co-living spaces. For instance, growing rent prices, particularly in larger cities, have forced many renters to share space with non-related adult roommates. Cultural modifications have also had an impact, as remote work culture and the evolution of social connectivity have encouraged a greater number of renters to seek out community in new ways. Co-living is most appealing to young professionals, students, city dwellers, and remote workers for these reasons.
Key Considerations for Property Managers
Rental property owners and managers who are interested in entering the co-living market will face both opportunities and obstacles. Some of the key factors to consider include:
- Lease Structures & Flexibility: There are pros and cons to renting a single unit or property to multiple tenants. On the one side, individual leases can offer renters more flexibility while delivering rental property managers with greater stability in rental income and lower turnover costs. The converse of this advantage is the necessity to manage individual leases and lease renewals for multiple people, which can substantially increase a property manager’s workload. The alternative is to offer group leases, which can reduce lease management but also have other downsides.
- Furnishings & Shared Amenities: Another critical issue is how to design a co-living space for community living. Although configurations may differ, it is common for residents of co-living properties to anticipate the existence of communal spaces that facilitate social gatherings. Property managers can attract co-living renters by producing communal indoor and outdoor spaces. By providing shared amenities, décor, and furnishings, it is possible to guarantee that the communal spaces are not under the control of any single individual and that residents are comfortable.
- Tenant Screening & House Rules: Another feature of co-living rental properties is ensuring compatibility among co-living tenants. Residents of a co-living property may desire to share their residence with individuals who share their lifestyles and personalities, as they are not related. This can present a challenge for rental property managers, as it entails the management of expectations and responsibilities regarding communal spaces. Having a clear set of house rules can assist in the definition of these responsibilities and the establishment of expectations for conduct among non-related residents.
- Legal & Zoning Regulations: Another aspect to think about is local laws regarding shared housing. Before providing a co-living rental, it is crucial to conduct research in certain municipalities, as they have stringent regulations about the number of roommates and/or residents in different housing types.
How to Successfully Market Co-Living Rentals
There are some unique elements of marketing a co-living rental property, so it is critical to emphasize the characteristics that attract renters to co-living spaces to begin with. For example, in your advertising, remember to underline benefits like cost savings (mainly when compared to regular rental homes), community engagement, and location.
Renters looking for co-living spaces are typically lured to properties with easy access to urban centers and local arts and entertainment options. Additionally, they employ rental listing sites and social media to locate and apply for rental homes. By using digital marketing tactics and highlighting key features in your marketing, you can more effectively attract the type of renters who are looking for co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are several reasons to explore co-living rentals as a distinctive and money-making option for your properties. Nevertheless, co-living may not be the optimal choice for every rental property or location. This is why fully understanding all the benefits and challenges of managing co-living spaces is an important first step.
If you’re interested in managing or investing in co-living spaces, feel free to communicate with your local Real Property Management Main office. We are available to offer the assistance you require to make well-informed real estate decisions in Wayne County and its vicinity. Our team is capable of providing advice regarding operational management, investment strategies, and market trends. Reach out to us or call 248-852-6204 for more data!
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
