As the rental market continues to evolve, co-living spaces continue to gain popularity among renters priced out of traditional rental housing. Co-living spaces attract tenants seeking affordability along with flexibility and a sense of belonging. From professionals and students to city dwellers and remote workers, renters are opting for shared living arrangements that combine savings with lifestyle benefits.
At the same time, co-living arrangements pose opportunities and challenges for rental property owners and managers. In this guide, we’ll consider the rising influence of co-living spaces, the main concerns for rental property owners and managers, and techniques for successfully marketing these unique homes.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that originates from the rise of housing startups providing homes designed to be shared by five or more adult roommates. These co-living spaces appear in many forms, from single-family homes renovated to accommodate non-related residents to high-rise buildings converted into dormitory-style lodging. In a broader sense, co-living may also include master-planned communities or simply living with roommates.
The increase in popularity of co-living spaces stems from a combination of factors. Rising rents in larger cities, for example, have encouraged renters to share space with non-related adult roommates. Additionally, remote work culture and evolving patterns of social connection have prompted renters to seek out community in fresh ways. Consequently, co-living holds strong appeal for professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers venturing into the co-living market will encounter both prospects and hurdles. 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. For instance, individual leases can offer renters more flexibility while providing rental property managers dependable rental income and lower turnover costs. The drawback is the requirement to manage individual leases and lease renewals for numerous tenants, which can intensify a property manager’s workload. Conversely, offering group leases can reduce lease management but may include other disadvantages.
- Furnishings & Shared Amenities: Another key consideration is how to design a co-living space for community living. Though each setup may differ, residents of co-living properties typically anticipate communal spaces that encourage gatherings. Property managers can entice co-living renters by designing communal indoor and outdoor spaces. Providing furnishings, accents, and shared amenities ensures residents are comfortable and that no individual dominates communal spaces.
- Tenant Screening & House Rules: Another priority of co-living rental properties is promoting compatibility among co-living tenants. Since residents of a co-living property are non-related adults, they often prefer to share their home with individuals whose lifestyles and personalities fit their own. This can be demanding for rental property managers as it requires managing expectations in communal spaces. Establishing a clear set of house rules can clarify duties and provide expectations for conduct among non-related residents.
- Legal & Zoning Regulations: Another key point is local laws regarding shared housing. Some jurisdictions impose strict regulations about the number of roommates and/or residents in different housing types, so researching these in advance is critical before offering a co-living rental.
How to Successfully Market Co-Living Rentals
There are several unique elements of marketing a co-living rental property that property managers must address. To truly attract renters to co-living spaces, focus on benefits like cost savings, shared community engagement, and accessible locations.
Renters looking for co-living spaces often desire living arrangements that provide easy access to urban centers along with nearby local arts and entertainment options. Many of them use social channels and rental listing sites to locate and apply for rental homes. By concentrating on digital methods and highlighting key features in your marketing, managers can attract the type of renters who favor co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are multiple reasons to explore co-living rentals as a valuable and profitable option for your properties. Still, co-living may not always be the appropriate option for every rental property or locality. This is why thoroughly understanding all the benefits and challenges of managing co-living spaces is a crucial first step.
If you are interested in managing or investing in co-living spaces, reach out to your closest Real Property Management Gold office. We are here to provide the support needed to make informed real estate decisions in Calvert County and nearby regions. Our staff can help with market research, investment advice, and operational direction. Reach out to us or call 301-392-2172 to get more information!
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