However, co-living arrangements come with opportunities and challenges for rental property owners and managers. This guide explores the growth of co-living spaces, important considerations for rental property owners and managers, and strategies for successfully marketing these distinctive properties.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term linked to the rise of housing startups that offer homes designed to be shared by five or more adult roommates. Co-living spaces take many shapes, including single-family homes renovated for non-related residents and floors in high-rise buildings converted into dormitory-style lodging. Broadly, co-living can include master-planned communities or simply living with roommates.
A combination of factors contributes to the increase in popularity of co-living spaces. Skyrocketing rents in larger cities have led many renters to share space with non-related adult roommates. Furthermore, the rise of remote work culture has prompted renters to seek community in innovative ways. Co-living is therefore particularly attractive to city dwellers, students, professionals, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers exploring the co-living market will encounter both advantages and challenges. 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 positive side, individual leases can offer renters more flexibility while giving rental property managers steadier rental income and lower turnover costs. However, this also means having to manage individual leases and lease renewals for several residents, which can add to a property manager’s workload. An alternative is to offer group leases, which can reduce lease management but come with their own drawbacks.
- Furnishings & Shared Amenities: Another key factor is how to design a co-living space for community living. In many instances, co-living properties include communal spaces that bring people together. Property managers can attract co-living renters by creating communal indoor and outdoor spaces. Providing furnishings, decor, and shared amenities helps ensure residents are comfortable and prevents any one individual from controlling communal spaces.
- Tenant Screening & House Rules: Co-living rental properties also require careful attention to compatibility among co-living tenants. Since residents of a co-living property are unrelated adults, they often want housemates whose lifestyles and personalities align with theirs. This can pose challenges for rental property managers, who must balance expectations within communal spaces. A clear set of house rules helps establish responsibilities and expectations for conduct among non-related residents.
- Legal & Zoning Regulations: Finally, local laws regarding shared housing must be considered. Many areas enforce regulations about the number of roommates and/or residents in different housing types, making it essential to research requirements before offering 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 important to showcase the features that attract renters to co-living spaces. For instance, your promotions should emphasize benefits like cost savings, community engagement, and location advantages compared to traditional rentals.
Renters looking for co-living spaces often prefer homes with easy access to urban centers along with local arts and entertainment options. These renters also rely heavily on social media and rental listing sites to locate and apply for rental homes. By focusing on digital marketing efforts and highlighting key features in your marketing, you can better attract the type of renters searching for co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are many reasons to explore co-living rentals as a creative and lucrative option for your properties. Still, co-living may not always be the best option for every rental property or neighborhood. That is why fully understanding all the benefits and challenges of managing co-living spaces is a critical first step.
If you’re interested in managing or investing in co-living spaces, please partner with your local Real Property Management Firebird office. We are here to give the assistance you need to make sound real estate decisions in Glendale and the surrounding area. Our specialists can provide insight on market movements, investment methods, and day-to-day operations. Reach out to us or call 602-805-2211 today to find out more!