As the rental market continues to evolve, co-living spaces are growing in popularity for renters priced out of traditional rental housing. Co-living spaces are fascinated by tenants seeking affordability, flexibility, and a built-in sense of community. Individuals who rent are interested in shared living arrangements because they are suitable and save them money. This incorporates young professionals and students, remote workers, and city dwellers.
However, co-living arrangements can provide opportunities and challenges for rental property owners and managers. Let’s examine closely the rise of co-living spaces, some important considerations for rental property owners and managers, and approaches for successfully marketing these one-of-a-kind properties.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that arise from the rise of housing startups that deliver homes designed to be shared by five or more adult roommates. These co-living spaces come in different types, from single-family homes renovated to accommodate non-related residents to floors in high-rise buildings converted into dormitory-style lodging and so on. Generally, co-living can refer to anything from master-planned communities to simply living with roommates.
Various factors are encouraging the increase in the popularity of co-living spaces. For instance, growing rent prices, particularly in larger cities, have obligated several renters to share space with non-related adult roommates. Cultural changes have also had an effect, as remote work culture and transformations in social connectivity have provoked more renters to seek out community in new ways. Due to these, co-living tends to attract most young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
If rental property owners and managers prefer to enter into the co-living market, they will have to encounter 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. On the one hand, individual leases can offer renters more flexibility while giving rental property managers more constancy in rental income and lower turnover costs. One downside of this advantage is the need to manage individual leases and lease renewals for numerous people, which can greatly multiply a property manager’s workload. Another selection is to offer group leases, which can reduce lease management but could also have another disadvantage.
- Furnishings & Shared Amenities: Another critical thing is how to design a co-living space for community living. Even though each co co-living property is different, most of the time, residents anticipate having communal spaces where they can gather. Property managers might lure co-living renters by building communal indoor and outdoor spaces. Giving furnishings, decor, and shared amenities can ensure that residents are comfortable and that no one person controls the communal spaces.
- Tenant Screening & House Rules: Another aspect of co-living rental properties is ensuring compatibility among co-living tenants. As non-related adults, residents of a co-living property may want to share their home with people who have lifestyles and personalities comparable to their own. This can be tough for rental property managers since they have to keep track of everyone’s expectations and obligations when it comes to communal spaces. Establishing a clear set of house rules can help outline these errands and set expectations for conduct among non-related residents.
- Legal & Zoning Regulations: Another component to think about is local laws regarding shared housing. Before presenting a co-living rental, you need to know if your city or town has severe 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’s critical to focus on the things that attract renters to co-living spaces in the beginning. For instance, in your ads, make sure to mention benefits like cost savings (specifically in comparison with standard rental homes), community engagement, and location.
Renters looking for co-living spaces are typically keen on properties with easy access to urban centers and local arts and entertainment options. They also mostly utilize social media and rental listing sites to locate and apply for rental homes. By employing online publicity approaches and highlighting key features in your marketing, you can more easily attract the type of renters who need co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are lots of reasons to explore co-living rentals as a unique and helpful option for your properties. However, co-living might not be the best choice for every rental property or place. This is why the first thing that must done is to completely understand all the benefits and challenges of managing co-living spaces.
If you’re interested in managing or investing in co-living spaces, don’t hesitate to call your local Real Property Management Eagle office. Our objective is to give you the data you need to make well-informed real estate decisions in Garner and nearby areas. Our group can help you with things such as operational management, market movements, and investment strategies. Reach out to us or call 919-505-1776 for more information!
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