As the rental market continues to evolve, co-living spaces are an increasingly viable alternative for renters priced out of traditional rental housing. Co-living spaces appeal to tenants seeking affordability, flexibility, and a built-in sense of community. From young professionals and students to remote workers and city dwellers, renters are concerned with shared living arrangements that offer convenience and cost savings.
However, co-living arrangements deliver opportunities and challenges for rental property owners and managers. Let us analyze the emergence of co-living spaces, some key concerns 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 has emerged from the rise of housing startups providing homes designed to be shared by five or more adult roommates. These co-living spaces come in numerous kinds, from single-family homes renovated to accommodate non-related residents to floors in high-rise buildings converted into dormitory-style lodging and more. Co-living can include a wide range of arrangements, from master-planned communities to simply living with roommates.
Numerous aspects are driving the increase in the popularity of co-living spaces. For instance, growing rent prices, specifically in larger cities, have induced various renters to share space with non-related adult roommates. Cultural shifts have influenced the landscape, as remote work culture and alterations in social connectivity have led more renters to seek out community in new ways. Due to these, co-living tends to attract most young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers striving to enter into the co-living market will undergo both opportunities and hindrances. 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 other side, individual leases can offer renters more flexibility while giving rental property managers more constancy in rental income and lower turnover costs. On the flip side of that advantage is the need to manage individual leases and lease renewals for numerous individuals, which can drastically increase a property manager’s workload. The substitute is to offer group leases, which can reduce lease management but have other possible shortcomings.
- Furnishings & Shared Amenities: An important aspect to contemplate is how to design a co-living space for community living. Even though arrangements vary, residents of co-living properties expect to have communal spaces that encourage gatherings. Property managers can entice co-living renters by creating communal indoor and outdoor spaces. Presenting furnishings, decor, and shared amenities can guarantee that residents are comfortable and that no one person has control over communal spaces.
- Tenant Screening & House Rules: Another facet of co-living rental properties is ensuring compatibility among co-living tenants. As non-related adults, residents of a co-living property may seek to share their home with individuals who have lifestyles and personalities well-suited to their own. This can be hard for rental property managers as it encompasses handling prospects and errands related to communal spaces. Having a clear set of house rules can help outline these obligations and set expectations for conduct among non-related residents.
- Legal & Zoning Regulations: Another concern is local laws regarding shared housing. Certain municipalities impose strict regulations about the number of roommates and/or residents in different housing types, so it is imperative to conduct your research before providing a co-living rental.
How to Successfully Market Co-Living Rentals
There are some unique elements of marketing a co-living rental property, so it is important to underline the qualities that attract renters to co-living spaces to begin with. For example, in your advertising, be sure to stress benefits like cost savings (especially when compared to conventional rental homes), community engagement, and location.
Renters looking for co-living spaces frequently gravitate towards properties with easy access to urban centers and local arts and entertainment options. They also predominantly utilize social media and rental listing sites to locate and apply for rental homes. By employing digital marketing approaches and highlighting key features in your marketing, you can more simply attract the type of renters who wish for co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are several reasons to explore co-living rentals as a unique and advantageous option for your properties. Still, co-living may not be the ideal choice for every rental property or location. This is why completely understanding all the benefits and challenges of managing co-living spaces is a vital first stage.
If you’re interested in managing or investing in co-living spaces, we encourage you to reach out to your local Real Property Management Last Frontier office. We are here to give the assistance you need to make educated real estate decisions in Homer and adjacent areas. Our team is equipped to provide insights on market trends, investment strategies, and operational management. Reach out to us or call 907-268-4779 to get more details!
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