As the rental market continues to evolve, co-living spaces are becoming a more popular choice for renters priced out of traditional rental housing. Co-living spaces entice tenants seeking affordability, mobility, and a built-in sense of community. From young professionals and students to remote workers and city dwellers, renters are lured to shared living arrangements that deliver suitability and cost savings.
Nonetheless, co-living arrangements create opportunities and challenges for rental property owners and managers. Let’s take a deeper look at the rise of co-living spaces, some crucial concerns for rental property owners and managers, and approaches for successfully marketing these exclusive properties.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that pertains to the rise of housing startups granting homes designed to be shared by five or more adult roommates. These co-living spaces can take numerous forms, from single-family homes renovated to accommodate non-related residents to floors in high-rise buildings converted into dormitory-style lodging and so on. In wider terms, co-living can range from master-planned communities to simply living with roommates.
Numerous reasons are driving the increase in the popularity of co-living spaces. For illustration, growing rent prices, particularly in larger cities, have driven numerous renters to share space with non-related adult roommates. Cultural transformations have also had an influence, as remote work culture and shifts in social connectivity have led more renters to seek out community in new ways. For these explanations, co-living is most popular among young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers wishing to enter the co-living market will encounter both opportunities and problems. 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 the flip side, individual leases can offer renters more flexibility while offering rental property managers more stability in rental income and lower turnover costs. The other side of that perk is the requirement to manage individual leases and lease renewals for several people, which can greatly raise a property manager’s workload. The other option is to offer group leases, which can reduce lease management but may have other disadvantages.
- Furnishings & Shared Amenities: Another critical factor is how to design a co-living space for community living. While arrangements fluctuate, in several scenarios, residents of co-living properties expect to have communal spaces that facilitate events. Property managers can attract co-living renters by providing communal indoor and outdoor spaces. Supplying furnishings, decor, and shared amenities can guarantee that residents are comfortable and that no single person has control over communal spaces.
- Tenant Screening & House Rules: Another component of co-living rental properties is to guarantee compatibility among co-living tenants. Residents of a co-living property may prefer to share their dwelling with people who have similar lifestyles and personalities. This can be challenging for rental property managers because it involves controlling demands and duties related to communal spaces. Having a clear set of house rules can help define these responsibilities and establish expectations for conduct among non-related residents.
- Legal & Zoning Regulations: Another factor to consider is local laws regarding shared housing. Certain communities have strict regulations about the number of roommates and/or residents in different housing types. Therefore, it is critical to conduct research before proposing a co-living rental.
How to Successfully Market Co-Living Rentals
There are certain unique elements of marketing a co-living rental property. Thus, it is critical to promote the attributes that attract renters to co-living spaces to begin with. In particular, in your marketing materials, don’t forget to highlight benefits like cost savings (particularly in comparison to regular rental properties), community engagement, and location.
Renters looking for co-living spaces are frequently drawn to properties with easy access to urban centers and local arts and entertainment options. They also primarily employ social media and rental listing sites to locate and apply for rental homes. By employing digital marketing strategies and highlighting key features in your marketing, you may better attract the type of renters seeking 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 lucrative option for your properties. Nonetheless, co-living may not be a suitable choice for every rental property or location. This is why fully understanding all the benefits and challenges of managing co-living spaces is an essential beginning.
If you’re interested in managing or investing in co-living spaces, speak with your local Real Property Management Keystone office. We are here to provide the support you need to make informed real estate decisions in McKees Rocks and adjacent areas. Our staff can provide advice on market trends, investment strategies, and operations management. Reach out to us or call 412-385-2300 to learn more!
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