As the rental market continues to evolve, co-living spaces are an increasingly prevalent alternative for renters priced out of traditional rental housing. Co-living spaces allure tenants seeking affordability, mobility, and a built-in sense of camaraderie. From young professionals and students to remote workers and city dwellers, renters are allured to shared living arrangements that deliver convenience and cost savings.
However, co-living arrangements give opportunities and challenges for rental property owners and managers. We’ll investigate the growing popularity of co-living spaces, the features that rental property owners and managers must consider, and the best approaches to successfully market these unique rentals.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that results from the rise of housing startups providing homes designed to be shared by five or more adult roommates. These co-living spaces take different forms, from single-family homes renovated to accommodate non-related residents to floors in high-rise buildings converted into dormitory-style lodging and more. In wider terms, co-living can denote anything from master-planned communities to simply living with roommates.
Numerous aspects are compelling the increase in the popularity of co-living spaces. For example, growing rent prices, particularly in larger cities, have required several renters to share space with non-related adult roommates. Cultural changes have a significant impact, as remote work culture and changes in social connectivity have pushed more renters to seek out community in new ways. These aspects result in young professionals, students, city dwellers, and remote workers being the usual co-living tenants.
Key Considerations for Property Managers
Rental property owners and managers who want to move into the co-living market will be experienced with both opportunities and problems. 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. One positive feature of individual leases is they can offer renters more flexibility while presenting rental property managers with more stability in rental income and lower turnover costs. On the flip side, a property manager’s workload can get significantly heavier when they have to manage individual leases and lease renewals for numerous tenants. Another option is to offer group leases, which can reduce lease management but come with their own set of downsides.
- Furnishings & Shared Amenities: Another important aspect is how to design a co-living space for community living. While every co-living property is different, most people anticipate communal spaces that support gatherings. Property managers can attract co-living renters by creating communal indoor and outdoor spaces. Giving furnishings, decor, and shared amenities can guarantee that residents are comfortable and prevent any single individual from exerting control over communal spaces.
- Tenant Screening & House Rules: Another aspect to consider of co-living rental properties is ensuring compatibility among co-living tenants. As non-related adults, residents of a co-living property might want to share their home with individuals who have lifestyles and personalities that correspond with their own. This can be hard for rental property managers as it entails handling expectations and duties connected with communal spaces. Having a clear set of house rules can help define these tasks and establish expectations for conduct among non-related residents.
- Legal & Zoning Regulations: Another consideration is local laws regarding shared housing. Some cities have firm regulations about the number of roommates and/or residents in different housing types, so it is recommended to perform your research before proposing a co-living rental.
How to Successfully Market Co-Living Rentals
There are some unique elements of marketing a co-living rental property, so it is advisable to highlight the characteristics that attract renters to co-living spaces to begin with. For instance, in your marketing, remember to highlight benefits like cost savings (primarily when in comparison to standard rental homes), community engagement, and location.
Renters looking for co-living spaces are often induced to properties with easy access to urban centers and local arts and entertainment options. They also mainly employ social media and rental listing sites to locate and apply for rental homes. By utilizing online marketing methods and highlighting key features in your marketing, you can more directly attract the type of renters who prefer co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are several reasons to explore co-living rentals as a unique and lucrative option for your properties. However, co-living may not be the best option for every rental property or location. This is why completely understanding all the benefits and challenges of managing co-living spaces is an essential preliminary step.
If you’re interested in managing or investing in co-living spaces, don’t hesitate to visit your local Real Property Management Sailfish Coast office. In order to help you make informed real estate decisions in Hobe Sound and nearby areas, we are here to provide any assistance you may need. Investing plans, operational management, and market trends are all areas in which our team can deliver. Reach out to us or call 772-242-9094 to discover more!
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