As the rental market continues to evolve, co-living spaces are a growingly popular option for renters priced out of traditional rental housing. Co-living spaces draw in tenants seeking affordability, flexibility, and a built-in sense of community. From young professionals and students to remote workers and city dwellers, renters are interested in shared living arrangements that impart convenience and cost savings.
Nevertheless, co-living arrangements offer opportunities and challenges for rental property owners and managers. Let’s look attentively at the rise of co-living spaces, a few important considerations for rental property owners and managers, and proven systems for successfully marketing these unique properties.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that is derived from the rise of housing startups offering homes designed to be shared by five or more adult roommates. These co-living spaces take innumerable forms, from single-family homes renovated to accommodate non-related residents to floors in high-rise buildings converted into dormitory-style lodging and beyond. In broader terms, co-living can apply to anything from master-planned communities to completely living with roommates.
Several particular factors are driving the increase in popularity of co-living spaces. By way of illustration, rising rent prices, first of all in larger cities, have forced quite a lot of renters to share space with non-related adult roommates. Cultural shifts have additionally an effect, as remote work culture and changes in social connectivity have impelled more renters to seek out community in new ways. Then, co-living tends to engage most young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers studying to move into the co-living market will be faced with both opportunities and complexities. Particular key factors to consider include:
- Lease Structures & Flexibility: There are pros and cons to renting a single unit or property to multiple tenants. But despite that, individual leases can offer renters more flexibility while offering rental property managers more stability in rental income and lower turnover costs. The flip side of that advantage is the need to manage individual leases and lease renewals for many people, which can certainly increase a property manager’s workload. The alternative is to offer group leases, which can reduce lease management but still have other potential weak spots and downsides.
- Furnishings & Shared Amenities: Another relevant consideration is how to design a co-living space for community living. While arrangements differ, in nearly all cases, residents of co-living properties are looking to have communal spaces that lead to gatherings. Property managers can appeal to co-living renters by putting up communal indoor and outdoor spaces. Offering furnishings, decor, and shared amenities can ascertain that residents are comfortable and that no one person has control over communal spaces.
- Tenant Screening & House Rules: Another section of co-living rental properties is nailing down 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 compatible with their own. This can be complex for rental property managers as it includes handling expectations and responsibilities related to communal spaces. Instituting a clear set of house rules can help specify these duties and set expectations for conduct among non-related residents.
- Legal & Zoning Regulations: An additional consideration is local laws regarding shared housing. A lot of municipalities have strict regulations about the number of roommates and/or residents in different housing types, so it is salient to do your research earlier before offering a co-living rental.
How to Successfully Market Co-Living Rentals
There are numerous unique elements of marketing a co-living rental property, so it is necessary to draw attention to the features that attract renters to co-living spaces to begin with. By way of illustration, in your advertising, nail down to take note of benefits like cost savings (first of all when compared to prevailing traditional rental homes), community engagement, and location.
Renters looking for co-living spaces are normally interested in properties with easy access to urban centers and local arts and entertainment options. They, at the same time, extensively use social media and rental listing sites to locate and apply for rental homes. By administering digital marketing strategies and highlighting key features in your marketing, you can very easily attract the type of renters who are directly after co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are innumerable reasons to explore co-living rentals as a unique and functional option for your properties. Still, co-living may not be the best option for every rental property or location. Precisely why fully understanding all the benefits and challenges of managing co-living spaces is a great first step.
If you’re interested in managing or investing in co-living spaces, please contact your local Real Property Management Pioneer office. We are here to impart the support you need to carefully make informed real estate decisions in Plano and nearby. Our team can offer smart suggestions on market trends, investment strategies, and operational management. Reach out to us or call 940-435-2526 to find out more!
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