As the rental market continues to evolve, co-living spaces are an increasingly popular option for renters priced out of traditional rental housing. Co-living spaces captivate tenants seeking affordability, flexibility, and a built-in sense of community. From young professionals and students to remote workers and city dwellers, renters are drawn to shared living arrangements that endow convenience and cost savings.
Although, be aware, co-living arrangements give opportunities and challenges for rental property owners and managers. Let’s make a careful study of the rise of co-living spaces, some focal considerations for rental property owners and managers, and tried and true systems for successfully marketing these unique properties.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that arises from the rise of housing startups presenting homes designed to be shared by five or more adult roommates. These co-living spaces take so many 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 common terms, co-living can hint at anything from master-planned communities to simply living with roommates.
Several factors are driving the increase in popularity of co-living spaces. By way of illustration, rising rent prices, most importantly in larger cities, have forced quite a lot of renters to share space with non-related adult roommates. Cultural shifts have, likewise, an effect, as remote work culture and changes in social connectivity have incited more renters to seek out community in new ways. That’s why, co-living tends to pull in most young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers assessing to move into the co-living market will be faced with both opportunities and challenges. Vital key factors to consider include:
- Lease Structures & Flexibility: There are pros and cons to renting a single unit or property to multiple tenants. But, in fact, individual leases can offer renters more flexibility while offering rental property managers more stability in rental income and lower turnover costs. The other side of that advantage is the need to manage individual leases and lease renewals for a lot of people, which can highly optimize a property manager’s workload. The alternative is to offer group leases, which can reduce lease management, but, however, still has other potential setbacks.
- Furnishings & Shared Amenities: Another essential consideration is how to design a co-living space for community living. While arrangements actually vary, in the majority of cases, residents of co-living properties imagine having communal spaces that encourage gatherings. Property managers can appeal to co-living renters by developing communal indoor and outdoor spaces. Bringing in 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 piece of co-living rental properties is assuring compatibility among co-living tenants. As non-related adults, residents of a co-living property may wish to share their home with people who have lifestyles and personalities compatible with their own. This can be a complication for rental property managers as it covers dealing with expectations and responsibilities related to communal spaces. Forming a clear set of house rules can help unmistakably denote these duties and set expectations for conduct among non-related residents.
- Legal & Zoning Regulations: An additional consideration is local laws regarding shared housing. Multiple municipalities have strict regulations about the number of roommates and/or residents in different housing types, so it is relevant to do your research preparatory to offering a co-living rental.
How to Successfully Market Co-Living Rentals
There are many unique elements of marketing a co-living rental property, so it is very important to focus on the features that attract renters to co-living spaces for starters. By way of illustration, in your advertising, safeguard to clearly highlight benefits like cost savings (most importantly when compared to traditional rental homes), community engagement, and location.
Renters looking for co-living spaces are commonly drawn to properties with easy access to urban centers and local arts and entertainment options. At the same time, they mostly use social media and rental listing sites to locate and apply for rental homes. By applying digital marketing strategies and highlighting key features in your marketing, you can, without hitch, attract the type of renters who are on the look out for 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 profitable option for your properties. Nonetheless, co-living may not be an excellent option for every rental property or location. This being the case, fully understanding all the benefits and challenges of managing co-living spaces is a primal first step.
If you’re interested in managing or investing in co-living spaces, please contact your local Real Property Management Champion office. We are here to offer you the support you need to soundly make informed real estate decisions in Wilmington and nearby. Our team can offer competent guidance on market trends, investment strategies, and operational management. Reach out to us or call 910-638-0190 to discover more!
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