As the rental market continues to evolve, co-living spaces are becoming a more sought-after choice for renters priced out of traditional rental housing. Co-living spaces capture tenants seeking affordability, adaptability, and a strong feeling of belonging. From young professionals and students to remote workers and city dwellers, renters tend to stick to shared living arrangements that provide ease and monetary advantages.
Nonetheless, co-living arrangements deliver opportunities and challenges for rental property owners and managers. Let’s look over the development of co-living spaces, some crucial variables for rental property owners and managers, and approaches for successfully marketing these unique dwellings.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that originates from the rise of housing startups providing homes designed to be shared by five or more adult roommates. These co-living spaces come in multiple 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 greater detail, co-living encompasses anything from master-planned communities to simply living with roommates.
Multiple variables are influencing the increase in the popularity of co-living spaces. For instance, raising rental costs, particularly in larger cities, made it necessary for many renters to share space with non-related adult roommates. Developments in culture have influenced the situation, as remote work culture and alterations in social connections have caused more renters to seek out community in new ways. Due to these factors, co-living generally attracts primarily young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers aiming toward joining the co-living market will encounter various advantages and drawbacks. 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 contrary, personal leases can offer renters more flexibility while granting rental property managers enhanced consistency in rental income and lower turnover costs. The negative aspect of that benefit is the requirement to manage individual leases and lease renewals for numerous individuals, which can enormously elevate a property manager’s workload. Another possibility is to offer group leases, which can reduce lease management but come with other potential negatives.
- Furnishings & Shared Amenities: An additional significant factor is how to design a co-living space for community living. Although structures differ, in numerous instances, residents of co-living properties look forward to communal spaces that encourage socializing. Property managers can appeal to co-living renters by designing communal indoor and outdoor spaces. Offering furnishings, decor, and shared amenities can ensure that residents are comfortable and that no one person has control over communal spaces.
- Tenant Screening & House Rules: A further characteristic of co-living rental properties is ensuring compatibility among co-living tenants. As unconnected adults, residents of a co-living property might seek to share their residence with individuals whose lifestyles and personalities coincide with theirs. This may pose an issue for rental property managers since it includes supervising expectations and duties related to communal spaces. Having a clear set of house rules can assist in describing these responsibilities and establishing expectations for conduct among non-related residents.
- Legal & Zoning Regulations: Another thing to think about is local laws regarding shared housing. Certain municipalities enforce stringent regulations about the number of roommates and/or residents in different housing types, making it crucial to carry out your research prior to showcasing a co-living rental.
How to Successfully Market Co-Living Rentals
There are some unique elements of marketing a co-living rental property, making it necessary to point out the qualities that attract renters to co-living spaces from the start. For instance, in your advertising strategy, make sure to highlight benefits like cost savings (particularly in relation to standard rental properties), community engagement, and location.
Renters looking for co-living spaces frequently move towards properties with easy access to urban centers and local arts and entertainment options. They mainly 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 can help you more effectively attract the type of renters who are looking for co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are numerous reasons to explore co-living rentals as an exceptional and lucrative option for your properties. Nevertheless, co-living might not be beneficial for every rental property or location. Fully understanding all the benefits and challenges of managing co-living spaces is an essential initial step.
If you’re interested in managing or investing in co-living spaces, kindly reach out to your nearby Real Property Management Performance office. We are here to present the assistance you require to make informed real estate decisions in Monmouth County and surrounding locations. Our group is able to offer suggestions on industry trends, investment approaches, and operational oversight. Reach out to us or call 732-289-9337 for additional information!
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.
