As the rental market continues to evolve, co-living spaces are emerging as a favorite choice for renters priced out of traditional rental housing. Co-living spaces bring in tenants seeking affordability, mobility, and an inherent feeling of community. From young professionals and students to remote workers and city dwellers, shared living arrangements are becoming popular with renters because it offers comfort and financial benefits.
Yet, co-living arrangements deliver opportunities and challenges for rental property owners and managers. Let us analyze the increasing number of co-living spaces, along with important factors for rental property owners and managers and procedures for successfully marketing these unique properties.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that is recognized from the rise of housing startups offering homes designed to be shared by five or more adult roommates. These co-living spaces take 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 a more expansive context, co-living encompasses a range of arrangements, from master-planned communities to simply living with roommates.
Many variables are adding to the increase in popularity of co-living spaces. For instance, rising rent prices, mostly in larger cities, have led numerous renters to share space with non-related adult roommates. The evolution of cultural dynamics has influenced the landscape, as remote work culture and transformations in social connections have pushed renters to seek out community in new ways. For these factors, co-living generally entices young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers considering moving into the co-living market will encounter a range of opportunities as well as difficulties. 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 one side, individual leases can offer renters more flexibility while supplying rental property managers with a boost in rental income and lower turnover costs. While that advantage is noteworthy, it is important to consider the necessity of managing individual leases and lease renewals for numerous tenants, which can extensively increase a property manager’s workload. One possible approach is to offer group leases, which can reduce lease management, but there could be other associated challenges.
- Furnishings & Shared Amenities: An important aspect to think about is how to design a co-living space for community living. While arrangements differ, it is often the case that residents of co-living properties assume to have communal spaces that support social occasions. Property managers can capture co-living renters by building communal indoor and outdoor spaces. Delivering furnishings, decor, and shared amenities can ensure that residents are comfortable while promoting equitable access to communal spaces.
- Tenant Screening & House Rules: Another aspect of co-living rental properties is ensuring 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 that fit with their own. This can be a test for rental property managers as it encompasses managing expectations and obligations related to communal spaces. Having a clear set of house rules can help outline these tasks and create expectations for conduct among non-related residents.
- Legal & Zoning Regulations: It is important to take into account the local laws regarding shared housing. Some municipalities have strict regulations about the number of roommates and/or residents in different housing types. Therefore, conducting thorough research prior to presenting a co-living rental opportunity is advisable.
How to Successfully Market Co-Living Rentals
There are some unique elements of marketing a co-living rental property, so it is essential to underline the attributes that attract renters to co-living spaces to begin with. In your advertising, it would be advantageous to highlight benefits like cost savings (especially when compared to traditional rental homes), community engagement, and location.
Renters looking for co-living spaces are often captivated by properties with easy access to urban centers and local arts and entertainment options. They mostly employ social media and rental listing sites to locate and apply for rental homes. By using internet marketing strategies and highlighting key features in your marketing, you can more easily attract the type of renters who are looking for co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are a lot of reasons to explore co-living rentals as a unique and profitable option for your properties. Yet, co-living may not be acceptable for all rental properties or locations. This is why fully understanding all the benefits and challenges of managing co-living spaces is a crucial first step.
If you’re interested in managing or investing in co-living spaces, kindly talk to your local Real Property Management Ascension office. We are available to give the assistance you need to make educated real estate decisions in Red Bank and adjacent areas. Our team is well-positioned to provide insights on market trends, investment strategies, and operational management. Reach out to us or call 706-760-7912 for further 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.
