As the rental market continues to evolve, co-living spaces are becoming a favorite preference for renters priced out of traditional rental housing. Co-living spaces magnetize tenants seeking affordability, versatility, and an inherent sense of belonging. From young professionals and students to remote workers and city dwellers, renters are attracted to shared living arrangements that deliver ease and cost efficiency.
Yet, co-living arrangements offer opportunities and challenges for rental property owners and managers. Let’s take a closer look at the rise of co-living spaces, some important considerations for rental property owners and managers, and approaches for successfully marketing these unique properties.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that has arisen from the rise of housing startups providing homes designed to be shared by five or more adult roommates. These co-living spaces come in various forms, from single-family homes renovated to accommodate non-related residents to floors in high-rise buildings converted into dormitory-style lodging and more. Co-living a wide range of arrays, from master-planned communities to simply living with roommates.
Numerous reasons have led to the increase in the popularity of co-living spaces. For example, increasing renting expenses, specifically in larger cities, have pushed several renters to share space with non-related adult roommates. Fluctuations in society have impacted the landscape, as remote work culture and changing social connectivity have pushed more renters to seek out community in new ways. Co-living is particularly alluring to young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers striving to join the co-living market will encounter a range of opportunities and difficulties. 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 hand, individual leases can offer renters more flexibility while granting rental property managers more constancy in rental income and lower turnover costs. The other side of that advantage is the need to manage individual leases and lease renewals for multiple people, which can significantly increase a property manager’s workload. Another option is to offer group leases, which can reduce lease management; however, this method could present drawbacks as well.
- Furnishings & Shared Amenities: An essential aspect to think about is how to design a co-living space for community living. Although arrangements differ, most of the time, residents of co-living properties anticipate having communal spaces that facilitate social events. 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 controlling communal spaces.
- Tenant Screening & House Rules: Another critical matter of co-living rental properties is guaranteeing compatibility among co-living tenants. As non-related adults, residents of a co-living property may want to share their home with individuals who have lifestyles and personalities that fit with their own. Managing opportunities and duties concerning communal spaces can pose a difficulty for rental property managers. Developing a clear set of house rules can help define these obligations and set expectations for conduct among non-related residents.
- Legal & Zoning Regulations: Another critical aspect to consider is local laws regarding shared housing. Some municipalities apply strict regulations about the number of roommates and/or residents in different housing types, so it is a good idea to do 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 important to focus on the traits that attract renters to co-living spaces in the first place. In your marketing plan, you need to showcase benefits like cost savings, especially in comparison to conventional rental homes, community engagement, and location.
Renters looking for co-living spaces are often attracted to properties with easy access to urban centers and local arts and entertainment options. They mostly utilize social media and rental listing sites to locate and apply for rental homes. Utilizing virtual advertising methods and highlighting key features in your marketing can effectively attract the type of renters who are looking for co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are numerous reasons to explore co-living rentals as a distinct and rewarding option for your properties. Yet, co-living may not be the optimal solution for every rental property or location. This is the reason why completely understanding all the benefits and challenges of managing co-living spaces is a vital first step.
If you’re interested in managing or investing in co-living spaces, please contact your local Real Property Management Teague office. We are committed to providing the support you need to make sensible real estate decisions in Bethlehem and surrounding areas. Our team is prepared to offer insights on market trends, investment strategies, and operational management. Reach out to us or call 518-612-4900 for additional details!
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