As the rental market continues to evolve, co-living spaces are a continuously growing popular option for renters priced out of traditional rental housing. Co-living spaces greatly 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 captivated by shared living arrangements that extend convenience and cost savings.
On the other hand, co-living arrangements cite opportunities and challenges for rental property owners and managers. Let’s look hard at the rise of co-living spaces, some major considerations for rental property owners and managers, and activities for successfully marketing these unique properties.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that is derived from the rise of housing startups granting homes designed to be shared by five or more adult roommates. These co-living spaces take a lot 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 broader terms, co-living can mean anything from master-planned communities to living with roommates.
Various factors are driving the increase in popularity of co-living spaces. For example, rising rent prices, primarily in larger cities, have forced particular renters to share space with non-related adult roommates. Cultural shifts have likewise an effect, as remote work culture and changes in social connectivity have incited more renters to seek out community in new ways. Therefore, co-living tends to interest most young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers assessing to move into the co-living market will be faced with both opportunities and issues. Several key factors to consider include:
- Lease Structures & Flexibility: There are pros and cons to renting a single unit or property to multiple tenants. Except, individual leases can offer renters more flexibility while granting rental property managers more stability in rental income and lower turnover costs. The flip side of that advantage is the need to manage individual leases and lease renewals for some people, which can inescapably increase a property manager’s workload. The alternative is to offer group leases, which can reduce lease management despite having other potential setbacks.
- Furnishings & Shared Amenities: Another crucial consideration is how to design a co-living space for community living. While arrangements are certainly not the same for all, most of the time, residents of co-living properties are looking to have communal spaces that can be advantageous for gatherings. Property managers can appeal to co-living renters by creating communal indoor and outdoor spaces. Imparting furnishings, decor, and shared amenities can always make sure that residents are comfortable and that no one person has control over communal spaces.
- Tenant Screening & House Rules: Another attribute of co-living rental properties is safeguarding compatibility among co-living tenants. As non-related adults, residents of a co-living property may like to share their home with people who have lifestyles and personalities that are compatible with their own. This can be an issue for rental property managers as it incorporates addressing expectations and responsibilities related to communal spaces. Putting together a clear set of house rules can extremely help clarify these duties and set expectations for conduct among non-related residents.
- Legal & Zoning Regulations: An additional consideration is local laws regarding shared housing. Considerable municipalities have strict regulations about the number of roommates and/or residents in different housing types, so it is crucial to do your research in preparation for offering a co-living rental.
How to Successfully Market Co-Living Rentals
There are quite a lot of unique elements of marketing a co-living rental property, so it is critical to get down to the features that attract renters to co-living spaces, to begin with. As for example, in your advertising, safeguard that you give particular attention to benefits like cost savings (primarily when compared to common and traditional rental homes), community engagement, and location.
Renters looking for co-living spaces are generally captivated by properties with easy access to urban centers and local arts and entertainment options. They also normally use social media and rental listing sites to locate and apply for rental homes. By applying digital marketing strategies and highlighting key features in your marketing, you can tremendously attract the type of renters who are in search of co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are a number of reasons to explore co-living rentals as a unique and efficient option for your properties. Despite that, co-living may not be the prime option for every rental property or location. Hence, fully understanding all the benefits and challenges of managing co-living spaces is an integral first step.
If you’re interested in managing or investing in co-living spaces, please contact your local Real Property Management Apex office. We are here to extend the support you need to carefully make informed real estate decisions in Belton and closeby. Our team can offer smart guidance on market trends, investment strategies, and operational management. Reach out to us or call 254-732-1599 to find out more!
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