As the rental market continues to evolve, co-living spaces are becoming a more desirable option for renters priced out of traditional rental housing. Co-living spaces lure tenants seeking affordability, adaptability, and a natural feeling of acceptance. From young professionals and students to remote workers and city dwellers, renters are paying attention to shared living arrangements that offer convenience and cost savings.
Nevertheless, co-living arrangements offer opportunities and challenges for rental property owners and managers. We will review the emergence of co-living spaces, some essential issues for rental property owners and managers, and tactics for successfully marketing these distinctive properties.
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 manifest 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 broadly includes everything from master-planned communities to simply living with roommates.
Several factors are driving the increase in popularity of co-living spaces. For instance, escalating rental fees, particularly in larger cities, have obligated several renters to share space with non-related adult roommates. Cultural transformations have impacted remote work culture and modifications in social connectivity, resulting in more renters seeking out community in new ways. Consequently, co-living primarily appeals to young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers seeking to join the co-living market will encounter both opportunities and issues. 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. However, individual leases can offer renters more flexibility while delivering rental property managers greater consistency in rental income and lower turnover costs. The counterpart of such an advantage is the need to manage individual leases and lease renewals for numerous people, which can considerably increase a property manager’s workload. Another option is to offer group leases, which can reduce lease management but also include other possible disadvantages.
- Furnishings & Shared Amenities: A crucial consideration is how to design a co-living space for community living. Even though arrangements differ, residents of co-living properties often anticipate communal spaces that encourage gatherings. Property managers can attract co-living renters by constructing communal indoor and outdoor spaces. Providing furnishings, decor, and shared amenities can ensure that residents are comfortable and prevent anyone from dominating communal spaces.
- Tenant Screening & House Rules: Another facet of co-living rental properties is ensuring compatibility among co-living tenants. As non-related adults, residents of a co-living property may prefer to share their home with individuals whose lifestyles and personalities match with their own. This poses an issue for rental property managers since it involves overseeing opportunities and errands concerning communal spaces. A clear set of house rules can delineate tasks and establish expectations for conduct among non-related residents.
- Legal & Zoning Regulations: Another factor to contemplate is local laws regarding shared housing. Certain towns impose stern regulations about the number of roommates and/or residents in different housing types; therefore, performing thorough research prior to proposing a co-living rental is critical.
How to Successfully Market Co-Living Rentals
There are some unique elements of marketing a co-living rental property, making it crucial to underline the features that attract renters to co-living spaces from the outset. For instance, in your advertising, be sure to stress benefits like cost savings (particularly in comparison to conventional rental properties), community engagement, and location.
Renters looking for co-living spaces are frequently 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 digital marketing techniques and highlighting key features in your marketing, you can more easily attract the type of renters who are searching 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 worthwhile option for your properties. Nonetheless, co-living may not be appropriate for every rental property or locale. This is why fully understanding all the benefits and challenges of managing co-living spaces is an important initial step.
If you’re interested in managing or investing in co-living spaces, kindly reach out to your local Real Property Management Verita office. We are here to provide the support you need to make knowledgeable real estate decisions in Ocoee and its vicinity. Our team can offer perspectives on market trends, investment approaches, and operational oversight. Reach out to us or call 321-972-6823 to learn more!
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.
