As the rental market continues to evolve, co-living spaces become a more attractive choice for renters priced out of traditional rental housing. Co-living spaces appeal to tenants seeking affordability, adaptability, and a built-in sense of community. Renters range from young experts and students to remote workers and city dwellers, and many are attracted to shared living arrangements because they are convenient and cost-effective.
Yet, co-living arrangements offer opportunities and challenges for rental property owners and managers. Let’s take an in-depth look at the rise of co-living spaces, some important concerns for rental property owners and managers, and techniques for successfully marketing these one-of-a-kind facilities.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that refers to the rise of housing startups providing homes designed to be shared by five or more adult roommates. These co-living spaces take numerous 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 more general terms, co-living can relate to anything from master-planned communities to simply living with roommates.
A variety of elements contribute to the increase in popularity of co-living spaces. For instance, rising rent prices, mainly in larger cities, have forced several renters to share space with non-related adult roommates. Cultural trends have also had an impact, as remote work culture and advances in social networking have encouraged more renters to seek out community in new ways. For these reasons, co-living is particularly appealing to young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers wishing to enter the co-living market will be experienced with both opportunities and issues. A couple 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, people leases can offer renters more flexibility while delivering rental property managers more steadiness in rental income and lower turnover costs. The other side of that benefit is the need to manage individual leases and lease renewals for several individuals, which can greatly increase a property manager’s workload. The substitute is to offer group leases, which can reduce lease management but have other possible drawbacks.
- Furnishings & Shared Amenities: Another important matter is how to design a co-living space for community living. Even though arrangements differ, in several situations, residents of co-living properties expect to have communal spaces that facilitate meetings. Property managers can attract co-living renters by creating communal indoor and outdoor spaces. Providing fixtures, decor, and shared amenities can guarantee that residents are comfortable and that nobody has authority over communal spaces.
- Tenant Screening & House Rules: Another component of co-living rental properties is guaranteeing compatibility among co-living tenants. As non-related adults, residents of a co-living property may like to share their home with individuals who have lifestyles and personalities compatible with their own. This can be difficult for rental property managers because it requires handling expectations and responsibilities linked to communal spaces. Having a clear set of house rules can assist in defining these responsibilities and set expectations for conduct among non-related residents.
- Legal & Zoning Regulations: Another factor to consider is local laws regarding shared housing. Some localities have severe regulations about the number of roommates and/or residents in different housing types, so it is important to conduct your research before providing a co-living rental.
How to Successfully Market Co-Living Rentals
There are some unique elements of marketing a co-living rental property, so it is important to mention the attributes that attract renters to co-living spaces to start with. For instance, in your advertising, make sure to highlight benefits like cost savings (particularly when compared to regular rental properties), community engagement, and location.
Renters looking for co-living spaces generally gravitate to properties with easy access to urban centers and local arts and entertainment options. They also mainly use social media and rental listing sites to locate and apply for rental homes. By utilizing online advertising approaches 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 numerous reasons to explore co-living rentals as a unique and profitable option for your properties. Yet, co-living may not be appropriate for all rental properties or locations. This is why a thorough understanding of all the benefits and challenges of managing co-living spaces is a critical initial move.
If you’re interested in managing or investing in co-living spaces, please get in touch with your local Real Property Management Summit office. We are here to help you make knowledgeable real estate decisions in Staunton and surrounding areas. Our staff can provide insight into market trends, investment strategies, and operational management. Reach out to us or call 540-315-8090 to get information!
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