As the rental market continues to evolve, co-living spaces are turning into a more popular option for renters priced out of traditional rental housing. Co-living spaces draw in tenants seeking affordability, flexibility, and a built-in sense of community. From young professionals and students to remote workers and city dwellers, renters are enticed to shared living arrangements that bestow convenience and cost savings.
But, without doubt, co-living arrangements offer both extensive opportunities and challenges for rental property owners and managers. Let’s take a thorough examination of the rise of co-living spaces, various salient considerations for rental property owners and managers, and tried and tested tactics for successfully marketing these unique properties.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that arises out of the rise of housing startups bringing about homes designed to be shared by five or more adult roommates. These co-living spaces take multiple 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 more generic words, co-living can indicate anything from master-planned communities to plainly living with roommates.
Several different factors are driving the increase in popularity of co-living spaces. As an example, rising rent prices, more importantly in larger cities, have forced so many renters to share space with non-related adult roommates. Cultural shifts have particularly an effect, as remote work culture and changes in social connectivity have led more renters to seek out community in new ways. As a consequence, co-living tends to fascinate and attract most young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers thinking about moving into the co-living market will be faced with both opportunities and challenges. A few of the vital key factors to consider include:
- Lease Structures & Flexibility: There are pros and cons to renting a single unit or property to multiple tenants. Though, individual leases can offer renters more flexibility while presenting 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 many people, which can undeniably increase a property manager’s workload. The alternative is to offer group leases, which can reduce lease management but have other potential weak points as well.
- Furnishings & Shared Amenities: Another pertinent consideration is how to design a co-living space for community living. While arrangements vary considerably, mostly, residents of co-living properties hope to have communal spaces that lead to gatherings. Property managers can appeal to co-living renters by having communal indoor and outdoor spaces. Bestowing furnishings, decor, and shared amenities can secure 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 always making certain 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 really tough challenge for rental property managers as it includes properly handling expectations and responsibilities related to communal spaces. Bringing on a clear set of house rules can help decidedly define these duties and set expectations for conduct among non-related residents.
- Legal & Zoning Regulations: One other consideration is local laws regarding shared housing. Quite a few municipalities have strict regulations about the number of roommates and/or residents in different housing types, so it is significant to do your research before offering a co-living rental.
How to Successfully Market Co-Living Rentals
There are several unique elements of marketing a co-living rental property, so it is important to consider closely and highlight the features that attract renters to co-living spaces primarily. For instance, in your advertising, ensure to point out benefits like cost savings (more importantly when compared to traditionally regular 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 likewise greatly use social media and rental listing sites to locate and apply for rental homes. By utilizing digital marketing strategies and highlighting key features in your marketing, you can hastily attract the type of renters who are committed to finding co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are multiple reasons to explore co-living rentals as a unique and favorably profitable option for your properties. But, it has to be said, co-living may not be the finest option for every rental property or location. So, as it shows, fully understanding all the benefits and challenges of managing co-living spaces is a salient first step.
If you’re interested in managing or investing in co-living spaces, please contact your local Real Property Management Now office. We are here to guarantee the support you need to meticulously make informed real estate decisions in De Beque and nearby. Our team can offer smart tips and guidance on market trends, investment strategies, and operational management. Reach out to us or call 970-314-7123 to find out so much more!
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