As the rental market continues to evolve, co-living spaces are becoming a more common option for renters priced out of traditional rental housing. Co-living spaces entice tenants seeking affordability, flexibility, and a built-in feeling of community. From young professionals and students to remote workers and city dwellers, renters are tempted to share living arrangements that bring convenience and cost savings.
Nevertheless, co-living arrangements bring opportunities and challenges for rental property owners and managers. Let’s look more closely at the growth of co-living spaces, some important issues for rental property owners and managers, and tactics for successfully marketing these unique properties.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that stems from the rise of housing startups granting homes designed to be shared by five or more adult roommates. These co-living spaces can take several forms, from single-family homes renovated to accommodate non-related residents to floors in high-rise buildings converted into dormitory-style lodging and so on. In general, co-living can range from master-planned communities to simply living with roommates.
Many factors are driving the increase in the popularity of co-living spaces. For illustration, increasing rent prices, mainly in larger cities, have urged numerous renters to share space with non-related adult roommates. Cultural changes have also had an influence, as remote work culture and changes in social connectivity have resulted in more renters seeking out community in new ways. For these reasons, co-living is most common among young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers wanting to enter the co-living market will face both 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. Individual leases can offer renters more flexibility while delivering rental property managers more stability in rental income and lower turnover costs. The other side of that advantage is the necessity to manage individual leases and lease renewals for numerous people, which can drastically increase a property manager’s workload. The other alternative is to offer group leases, which can reduce lease management but may have other difficulties.
- Furnishings & Shared Amenities: Another critical aspect is how to design a co-living space for community living. Although arrangements fluctuate, in most cases, residents of co-living properties expect to have communal spaces that facilitate gatherings. Property managers can get the interest of co-living renters by giving communal indoor and outdoor spaces. Providing furnishings, decor, and shared amenities can guarantee that residents are comfortable and that no single person has authority over communal spaces.
- Tenant Screening & House Rules: Another element of co-living rental properties is to ensure compatibility among co-living tenants. Residents of a co-living property may want to share their dwelling with individuals who have comparable lifestyles and personalities. This can be difficult for rental property managers because it requires handling demands and responsibilities related to communal spaces. Having a clear set of house rules can help outline these errands and establish expectations for conduct among non-related residents.
- Legal & Zoning Regulations: Another aspect to think about is local laws regarding shared housing. Certain cities have strict regulations about the number of roommates and/or residents in different housing types. Consequently, it is important to do research before suggesting a co-living rental.
How to Successfully Market Co-Living Rentals
There are several unique elements of marketing a co-living rental property. Therefore, it is critical to highlight the features that attract renters to co-living spaces to begin with. For instance, in your marketing materials, it is important to mention benefits like cost savings (particularly in comparison to regular rental properties), community engagement, and location.
Renters looking for co-living spaces are often drawn 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 digital marketing strategies and highlighting key features in your marketing, you may better attract the type of renters looking for co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are several reasons to explore co-living rentals as a distinct and lucrative option for your properties. However, co-living may not be an appropriate choice for every rental property or location. This is why entirely understanding all the benefits and challenges of managing co-living spaces is an important first step.
If you’re interested in managing or investing in co-living spaces, communicate with your local Real Property Management Bay State West office. We are here to deliver the aid you need to make well-versed real estate decisions in Amherst and adjoining areas. Our staff can give advice on market trends, investment plans, and operations management. Reach out to us or call 413-514-0050 to discover more!
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