As the rental market continues to evolve, co-living spaces are turning into a more and more popular option for renters priced out of traditional rental housing. Co-living spaces pull 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 strongly drawn to shared living arrangements that endow convenience and cost savings.
Be that as it may, take note that co-living arrangements endow both opportunities and challenges for rental property owners and managers. Let’s take a close examination of the rise of co-living spaces, a handful of relevant considerations for rental property owners and managers, and tried and true approaches for successfully marketing these unique properties.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that has its roots in the rise of housing startups providing homes designed to be shared by five or more adult roommates. These co-living spaces take quite a few 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 wider terms, co-living can specify anything from master-planned communities to straightforwardly living with roommates.
Innumerable factors are driving the increase in popularity of co-living spaces. To cite an instance, rising rent prices, first and foremost in larger cities, have forced many renters to share space with non-related adult roommates. Cultural shifts have, furthermore, an effect, as remote work culture and changes in social connectivity have brought more renters to seek out community in new ways. So, co-living tends to charm most young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers mulling over to move into the co-living market will be faced with both opportunities and risky challenges. Some vital key factors to consider include:
- Lease Structures & Flexibility: There are pros and cons to renting a single unit or property to multiple tenants. But, as a matter of fact, individual leases can offer renters more flexibility while bringing 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 various people, which can absolutely increase a property manager’s workload. The alternative is to offer group leases, which can reduce lease management, but, at the same time, have other potential faults too.
- Furnishings & Shared Amenities: Another critical consideration is how to design a co-living space for community living. While arrangements are mostly different, but, basically, residents of co-living properties expect to have communal spaces that greatly foster gatherings. Property managers can appeal to co-living renters by setting up communal indoor and outdoor spaces. Bringing in furnishings, decor, and shared amenities can make it a point that residents are comfortable and that no one person has control over communal spaces.
- Tenant Screening & House Rules: Another vital aspect 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 decide to share their home with people who have lifestyles and personalities compatible with their own. This can be a real challenge for rental property managers as it implicates dealing with expectations and responsibilities related to communal spaces. Creating a clear set of house rules can help clearly define these duties and set expectations for conduct among non-related residents.
- Legal & Zoning Regulations: An additional consideration is local laws regarding shared housing. Certain municipalities have strict regulations about the number of roommates and/or residents in different housing types, so it is pertinent to do your research prior to offering a co-living rental.
How to Successfully Market Co-Living Rentals
There are a number of unique elements of marketing a co-living rental property, so it is critical to pay special attention to the features that attract renters to co-living spaces in the first place. To cite an instance, in your advertising, always keep in mind to highlight benefits like cost savings (first and foremost when compared to traditional rental homes), community engagement, and location.
Renters looking for co-living spaces are commonly drawn to properties with easy access to urban centers and local arts and entertainment options. They furthermore consistently use social media and rental listing sites to locate and apply for rental homes. By taking advantage of digital marketing strategies and highlighting key features in your marketing, you can speedily attract the type of renters who are attempting to find co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are quite a lot of reasons to explore co-living rentals as a unique and beneficial option for your properties. But, a the same time, co-living may not be the ideal option for every rental property or location. That is why, fully understanding all the benefits and challenges of managing co-living spaces is a relevant first step.
If you’re interested in managing or investing in co-living spaces, please contact your local Real Property Management Principles office. We are here to bring the support you need to attentively make informed real estate decisions in Gladstone and nearby. Our team can offer astute advice on market trends, investment strategies, and operational management. Reach out to us or call 816-890-9800 to know a bit more!
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