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 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 tremendously attracted to shared living arrangements that provide convenience and cost savings.
Having said that, just know that co-living arrangements bring both opportunities and challenges for rental property owners and managers. Let’s contemplate deeper on the rise of co-living spaces, some imperative considerations for rental property owners and managers, and tested procedures for successfully marketing these unique properties.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that comes from the rise of housing startups offering 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 broader, universal terms, co-living can indicate anything from master-planned communities to directly living with roommates.
Various factors are driving the increase in popularity of co-living spaces. Particularly, rising rent prices, chiefly in larger cities, have forced many renters to share space with non-related adult roommates. Cultural shifts have, on top of everything else, an effect, as remote work culture and changes in social connectivity have inspired more renters to seek out community in new ways. In such circumstances, co-living tends to hugely attract most young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers thinking of taking on the move into the co-living market will be faced with both opportunities and challenges. Most 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. But, in fact, individual leases can offer renters more flexibility while bringing forth 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 innumerable people, which can consequently increase a property manager’s workload. The alternative is to offer group leases, which can reduce lease management but, actually, also has other potential flaws.
- Furnishings & Shared Amenities: Another integral consideration is how to design a co-living space for community living. While arrangements greatly vary, mainly, residents of co-living properties look forward to having communal spaces that can lead to gatherings. Property managers can appeal to co-living renters by developing communal indoor and outdoor spaces. Offering furnishings, decor, and shared amenities can always make certain that residents are comfortable and that no one person has control over communal spaces.
- Tenant Screening & House Rules: Another element of co-living rental properties is determining compatibility among co-living tenants. As non-related adults, residents of a co-living property may choose to share their home with people who have lifestyles and personalities compatible with their own. This can be a difficult challenge for rental property managers as it involves addressing expectations and responsibilities related to communal spaces. Formulating a clear set of house rules can help expressly define these duties and set expectations for conduct among non-related residents.
- Legal & Zoning Regulations: An additional consideration is local laws regarding shared housing. A few municipalities have strict regulations about the number of roommates and/or residents in different housing types, so it is weighty to do your research extensively before offering a co-living rental.
How to Successfully Market Co-Living Rentals
There are lots of unique elements of marketing a co-living rental property, so it is necessary to zero in on the features that attract renters to co-living spaces first and foremost. Particularly, in your advertising, determine to prioritize benefits like cost savings (chiefly when compared to the usual, traditional rental homes), community engagement, and location.
Renters looking for co-living spaces are generally attracted to properties with easy access to urban centers and local arts and entertainment options. They also frequently use social media and rental listing sites to locate and apply for rental homes. By implementing digital marketing strategies and highlighting key features in your marketing, you can very quickly attract the type of renters who are trying to look for co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are several, particular reasons to explore co-living rentals as a unique and valuable option for your properties. But, with that said, co-living may not be the most ideal option for every rental property or location. Accordingly, fully understanding all the benefits and challenges of managing co-living spaces is a crucial first step.
If you’re interested in managing or investing in co-living spaces, please contact your local Real Property Management Diamond office. We are here to endow the support you need to mindfully make informed real estate decisions in Newark and nearby. Our team can offer wise guidance on market trends, investment strategies, and operational management. Reach out to us or call 302-313-7700 to get more pertinent info!
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