As the rental market continues to evolve, co-living spaces are becoming a steadily more and more popular option for renters priced out of traditional rental housing. Co-living spaces delight and attract 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.
But, as a matter of fact, co-living arrangements give both opportunities and challenges for rental property owners and managers. Let’s look hard at the rise of co-living spaces, different important 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 emanates from the rise of housing startups making homes designed to be shared by five or more adult roommates. These co-living spaces take plenty 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 terminologies, co-living can indicate anything from master-planned communities to actually living with roommates.
Lots of factors are driving the increase in popularity of co-living spaces. As an illustration, rising rent prices, typically in larger cities, have forced several renters to share space with non-related adult roommates. Cultural shifts have specifically an effect, as remote work culture and changes in social connectivity have motivated more renters to seek out community in new ways. As a result, co-living tends to interest most to young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers considering a move into the co-living market will be faced with both opportunities and hardships. Essential key factors to consider include:
- Lease Structures & Flexibility: There are pros and cons to renting a single unit or property to multiple tenants. Although, in fact, individual leases can offer renters more flexibility while bestowing 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 several people, which can unquestionably increase a property manager’s workload. The alternative is to offer group leases, which can reduce lease management but may also have other potential drawbacks.
- Furnishings & Shared Amenities: Another basic consideration is how to design a co-living space for community living. While arrangements do vary, typically, residents of co-living properties want to have communal spaces that facilitate gatherings. Property managers can appeal to co-living renters by producing communal indoor and outdoor spaces. Extending furnishings, decor, and shared amenities can safeguard that residents are comfortable and that no one person has control over communal spaces.
- Tenant Screening & House Rules: Another item of co-living rental properties is completely making sure of compatibility among co-living tenants. As non-related adults, residents of a co-living property may desire to share their home with people who have lifestyles and personalities compatible with their own. This can be a dilemma for rental property managers as it includes addressing expectations and responsibilities related to communal spaces. Putting together a clear set of house rules can help evidently define these duties and set expectations for conduct among non-related residents.
- Legal & Zoning Regulations: Another consideration is local laws regarding shared housing. Quite a lot of municipalities have strict regulations about the number of roommates and/or residents in different housing types, so it is vital to do your research in preparation for offering a co-living rental.
How to Successfully Market Co-Living Rentals
There are certain unique elements of marketing a co-living rental property, so it is salient to give emphasis to the features that attract renters to co-living spaces for starters. As an illustration, in your advertising, make it a point to highlight benefits like cost savings (concretely when compared to traditional rental homes), community engagement, and location.
Renters looking for co-living spaces are generally enticed to properties with easy access to urban centers and local arts and entertainment options. They, in addition, regularly 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, without hassle, attract the type of renters who are seeking co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are plenty of reasons to explore co-living rentals as a unique and truly profitable option for your properties. Conversely, co-living may not be the outstanding option for every rental property or location. For this reason, fully understanding all the benefits and challenges of managing co-living spaces is a major first step.
If you’re interested in managing or investing in co-living spaces, please contact your local Real Property Management Delta office. We are here to provide the support you need to carefully make informed real estate decisions in Heber Springs and nearby. Our team can offer astute guidance on market trends, investment strategies, and operational management. Reach out to us or call 501-404-0674 to explore more!
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
