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 popular with tenants seeking affordability, have more freedom, and feel like they are part of a group. People who rent are interested in shared living arrangements because they are convenient and save them money. This includes young professionals and students, remote workers, and city dwellers.
Yet, co-living arrangements can bring opportunities and challenges for rental property owners and managers. Let’s look more closely at the rise of co-living spaces, some important things for rental property owners and managers, and ways for successfully marketing these one-of-a-kind homes.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that results from the rise of housing startups that provide homes designed to be shared by five or more adult roommates. These co-living spaces come in different kinds, from single-family homes renovated to accommodate non-related residents to floors in high-rise buildings converted into dormitory-style lodging and so on. Co-living can mean a lot of different things, from master-planned communities to simply living with roommates.
A number of factors are driving the increase in popularity of co-living spaces. For example, rising rent prices, especially in larger cities, have forced many renters to share space with non-related adult roommates. Cultural shifts have also had an effect, as remote work culture and changes in social connectivity have prompted more renters to seek out community in new ways. For these reasons, co-living tends to appeal most to young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
If rental property owners and managers want to get into the co-living market, they will have to deal with both possibilities 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 providing rental property managers more stability in rental income and lower turnover costs. One downside of this benefit is the need to manage individual leases and lease renewals for several people, which can drastically multiply a property manager’s workload. Another option is to offer group leases, which can reduce lease management but could also have other problems.
- Furnishings & Shared Amenities: Another important 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 expect to have communal spaces where they can get together. Property managers might draw in co-living renters by creating communal indoor and outdoor spaces. Giving furnishings, decor, and shared amenities can guarantee that residents are comfortable and that no one person controls the communal spaces.
- Tenant Screening & House Rules: Another part of co-living rental properties is ensuring compatibility among co-living tenants. As non-related adults, residents of a co-living property might prefer to share their home with people who have lifestyles and personalities similar to their own. This can be hard for rental property managers because they have to keep track of everyone’s expectations and duties when it comes to communal spaces. Having a clear set of house rules can help spell out these responsibilities and set expectations for conduct among non-related residents.
- Legal & Zoning Regulations: Another thing to think about is local laws regarding shared housing. Before proposing a co-living rental, you should find out if your city or town has strict 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 important to focus on the things that attract renters to co-living spaces in the first place. For illustration, in your ads, make sure to stress benefits like cost savings (specifically compared to standard rental homes), community engagement, and location.
Renters looking for co-living spaces are often interested in properties with easy access to urban centers and local arts and entertainment options. They also predominantly utilize social media and rental listing sites to locate and apply for rental homes. By utilizing online advertising techniques and highlighting key features in your marketing, you can more straightforwardly attract the type of renters who are in need of co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are several reasons to explore co-living rentals as a unique and beneficial option for your properties. Yet, co-living might not be the best solution for every rental property or place. This is why the first thing that needs to be done is to fully understand all the benefits and challenges of managing co-living spaces.
If you’re interested in managing or investing in co-living spaces, please get in touch with your local Real Property Management Unlimited office. Our goal is to give you the information you need to make smart real estate decisions in East Hampton and adjoining areas. Our team can help you with things like operational management, market trends, and investment plans. Reach out to us or call 516-875-1600 to learn more!
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