As the rental market continues to evolve, co-living spaces have grown into a popular choice for renters priced out of traditional rental housing. Co-living spaces provide tenants seeking affordability with added benefits like flexibility and community. From city dwellers and remote workers to students and professionals, renters are attracted to shared living arrangements that deliver both savings and convenience.
At the same time, co-living arrangements bring both opportunities and challenges for rental property owners and managers. Below, we’ll examine the rise of co-living spaces, the major factors for rental property owners and managers, and how to go about successfully marketing these properties.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term born out of the rise of housing startups that provide homes designed to be shared by five or more adult roommates. These co-living spaces appear in various forms, from single-family homes renovated to house non-related residents to high-rise buildings transformed into dormitory-style lodging. More generally, co-living can include master-planned communities as well as living with roommates.
Multiple forces contribute to the increase in popularity of co-living spaces. For example, escalating rents in larger cities have compelled many renters to share space with non-related adult roommates. Additionally, remote work culture and evolving social habits have encouraged renters to seek out community in innovative ways. As a result, co-living has become a preferred option for professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers entering the co-living market will face both advantages and obstacles. Some 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. On one hand, individual leases can offer renters more flexibility while allowing rental property managers to enjoy reliable rental income and lower turnover costs. On the other hand, this requires managing individual leases and lease renewals for several people, which can significantly increase a property manager’s workload. Another option is to offer group leases, which can reduce lease management but may bring other challenges.
- Furnishings & Shared Amenities: Another key consideration is how to design a co-living space for community living. Although arrangements differ, in many cases, residents of co-living properties anticipate communal spaces that support interaction. Property managers can attract co-living renters by creating communal indoor and outdoor spaces. Providing furnishings, decorations, and shared amenities ensures residents are comfortable and prevents any single resident from controlling communal spaces.
- Tenant Screening & House Rules: Another important factor of co-living rental properties is fostering compatibility among co-living tenants. Because residents of a co-living property are non-related adults, they often wish to share housing with people whose lifestyles and personalities are compatible with their own. This can present challenges for rental property managers as it means addressing expectations and duties within communal spaces. Having a clear set of house rules helps establish responsibilities and set expectations for conduct among non-related residents.
- Legal & Zoning Regulations: Another factor is local laws regarding shared housing. Some jurisdictions enforce strict regulations about the number of roommates and/or residents in specific housing types, so researching these rules is necessary before offering a co-living rental.
How to Successfully Market Co-Living Rentals
When it comes to promoting co-living opportunities, there are certain unique elements of marketing a co-living rental property that stand out. It’s crucial to point out the aspects that attract renters to co-living spaces, such as benefits like cost savings, increased community engagement, and convenience of location.
Renters looking for co-living spaces usually prioritize accommodations with easy access to urban centers and nearby local arts and entertainment options. They frequently browse social channels and rental listing sites to locate and apply for rental homes. By highlighting key features in your marketing with a strong digital presence, you can successfully attract the type of renters interested in co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are several reasons to explore co-living rentals as an innovative and rewarding option for your properties. Nevertheless, co-living may not be the ideal option for every rental property or market. This is why gaining a full understanding of all the benefits and challenges of managing co-living spaces is a critical first step.
If you’re interested in managing or investing in co-living spaces, connect with your local Real Property Management Executives Greater Atlanta office. We are here to give you the guidance you need to make informed real estate decisions in Suwanee and nearby areas. Our specialists can assist with insights on market trends, investment opportunities, and property operations. Reach out to us or dial 678-765-8383 to gain more insight!
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