As the rental market continues to evolve, co-living spaces are becoming an ever more popular option for renters priced out of traditional rental housing. Co-living spaces easily 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 greatly drawn to shared living arrangements that present convenience and cost savings.
But, as a matter of fact, co-living arrangements bring great opportunities and challenges for rental property owners and managers. Let’s take a comprehensive review of the rise of co-living spaces, a few vital considerations for rental property owners and managers, and tried and tested means for successfully marketing these unique properties.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that comes about from the rise of housing startups providing homes designed to be shared by five or more adult roommates. These co-living spaces take many 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 terms, co-living can just be anything from master-planned communities to simply living with roommates.
Various factors are driving the increase in popularity of co-living spaces. For instance, rising rent prices, exactly in larger cities, have forced a lot of 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 triggered more renters to seek out community in new ways. That being so, co-living tends to captivate most young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers choosing to move into the co-living market will be faced with both opportunities and demanding challenges. Major key factors to consider include:
- Lease Structures & Flexibility: There are pros and cons to renting a single unit or property to multiple tenants. But, individual leases can offer renters more flexibility while giving 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 most people, which can essentially increase a property manager’s workload. The alternative is to offer group leases, which can reduce lease management, while, also, having other potential weaknesses.
- Furnishings & Shared Amenities: Another beneficial consideration is how to design a co-living space for community living. While arrangements differ, as a general rule, residents of co-living properties look to have communal spaces that greatly foster gatherings. Property managers can appeal to co-living renters by properly setting up communal indoor and outdoor spaces. Providing 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 part of co-living rental properties is really making sure of compatibility among co-living tenants. As non-related adults, residents of a co-living property may prefer to share their home with people who have lifestyles and personalities compatible with their own. This can be a concern for rental property managers as it counts properly managing expectations and responsibilities related to communal spaces. Producing a clear set of house rules can help unmistakably define these duties and set expectations for conduct among non-related residents.
- Legal & Zoning Regulations: One other consideration is local laws regarding shared housing. Particular municipalities have strict regulations about the number of roommates and/or residents in different housing types, so it is pivotal to do your research just before offering a co-living rental.
How to Successfully Market Co-Living Rentals
There are a few unique elements of marketing a co-living rental property, so it is crucial to be concerned with the features that attract renters to co-living spaces, to start with. For instance, in your advertising, really make sure to take up benefits like cost savings (exactly when compared to traditional rental homes), community engagement, and location.
Renters looking for co-living spaces are continually charmed and attracted to properties with easy access to urban centers and local arts and entertainment options. They also substantially use social media and rental listing sites to locate and apply for rental homes. By adopting digital marketing strategies and highlighting key features in your marketing, you can, without hassle, attract the type of renters who are trying to find co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are numerous reasons to explore co-living rentals as a unique and highly profitable option for your properties. But, in fact, co-living may not be the appropriate option for every rental property or location. This is the reason why fully understanding all the benefits and challenges of managing co-living spaces is a principal first step.
If you’re interested in managing or investing in co-living spaces, please contact your local Real Property Management of the Triad office. We are here to offer the support you need to properly make informed real estate decisions in Winston-Salemand nearby. Our team can offer experienced counsel on market trends, investment strategies, and operational management. Reach out to us or call 336-355-6666 to check out more info!
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