Then again, take note, co-living arrangements bestow opportunities and challenges for rental property owners and managers. Let’s take a careful inspection of the rise of co-living spaces, a few basic but pertinent considerations for rental property owners and managers, and tested strategies for successfully marketing these unique properties.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that springs up from the rise of housing startups furnishing homes designed to be shared by five or more adult roommates. These co-living spaces take lots of 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 general terms, co-living can make reference to anything from master-planned communities to actually living with roommates.
Many factors are driving the increase in popularity of co-living spaces. Take one example, rising rent prices, absolutely in larger cities, have forced considerable renters to share space with non-related adult roommates. Cultural shifts have also an effect, as remote work culture and changes in social connectivity have propelled more renters to seek out community in new ways. Since that is so, co-living tends to enthrall and attract most young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers seriously considering moving into the co-living market will be faced with both opportunities and challenges. Plenty 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. Then again, individual leases can offer renters more flexibility while bringing rental property managers more stability in rental income and lower turnover costs. The other side of that advantage is the need to manage individual leases and lease renewals for numerous people, which can, accordingly, increase a property manager’s workload. The alternative is to offer group leases, which can reduce lease management but, despite that, have other potential setbacks.
- Furnishings & Shared Amenities: Another important consideration is how to design a co-living space for community living. While arrangements actually vary, normally, residents of co-living properties assume to have communal spaces that extremely help facilitate gatherings. Property managers can appeal to co-living renters by creating communal indoor and outdoor spaces. Bringing in furnishings, decor, and shared amenities can make certain that residents are comfortable and that no one person has control over communal spaces.
- Tenant Screening & House Rules: Another factor of co-living rental properties is establishing compatibility among co-living tenants. As non-related adults, residents of a co-living property may intend to share their home with people who have lifestyles and personalities compatible with their own. This can be a complex challenge for rental property managers as it implies responding to expectations and responsibilities related to communal spaces. Establishing a clear set of house rules can help obviously define these duties and set expectations for conduct among non-related residents.
- Legal & Zoning Regulations: An additional consideration is local laws regarding shared housing. Various municipalities have strict regulations about the number of roommates and/or residents in different housing types, so it is very important to do your research prior to offering a co-living rental.
How to Successfully Market Co-Living Rentals
There are plenty of unique elements of marketing a co-living rental property, so it is beneficial to point out the features that attract renters to co-living spaces for starters. Take one example, in your advertising, establish to point out benefits like cost savings (absolutely when compared to normal, traditional rental homes), community engagement, and location.
Renters looking for co-living spaces are customarily attracted to properties with easy access to urban centers and local arts and entertainment options. They also extensively use social media and rental listing sites to locate and apply for rental homes. By continuing to use digital marketing strategies and highlighting key features in your marketing, you can immediately attract the type of renters who are on the alert for co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are lots of reasons to explore co-living rentals as a unique and advantageous option for your properties. But, despite that, co-living may not be the most ideal option for every rental property or location. Because of this, fully understanding all the benefits and challenges of managing co-living spaces is a basic first step.
If you’re interested in managing or investing in co-living spaces, please contact your local Real Property Management of the Rockies office. We are here to provide you with the support you need to attentively make informed real estate decisions in Windsor and nearby. Our team can offer proper directions on market trends, investment strategies, and operational management. Reach out to us or call 970-658-0410 to know a bit more!