As the rental market continues to evolve, co-living spaces are becoming an increasingly popular option for renters priced out of traditional rental housing. Co-living spaces bring 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 looking for shared living arrangements that tender convenience and cost savings.
But, be aware, co-living arrangements give opportunities and challenges for rental property owners and managers. Let’s take a careful inspection at the rise of co-living spaces, certain beneficial considerations for rental property owners and managers, and tested ideas 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 rendering homes designed to be shared by five or more adult roommates. These co-living spaces take various 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 general terms, co-living can concern anything from master-planned communities to actually living with roommates.
Quite a lot of factors are driving the increase in popularity of co-living spaces. By way of example, rising rent prices, precisely in larger cities, have forced multiple renters to share space with non-related adult roommates. Cultural shifts have, in addition, an effect, as remote work culture and changes in social connectivity have instigated more renters to seek out community in new ways. For those reasons, co-living tends to pull in most young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers thinking of moving into the co-living market will be faced with both opportunities and challenges. Numerous key factors to consider include:
- Lease Structures & Flexibility: There are pros and cons to renting a single unit or property to multiple tenants. But, at any rate, individual leases can offer renters more flexibility while rendering 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 multiple people, which can actually increase a property manager’s workload. The alternative is to offer group leases, which can reduce lease management, but, also have other potential disadvantages.
- Furnishings & Shared Amenities: Another principal consideration is how to design a co-living space for community living. While arrangements certainly vary, generally, residents of co-living properties are seeking to have communal spaces that give tenants the chance to gather. Property managers can appeal to co-living renters by developing communal indoor and outdoor spaces. Contributing furnishings, decor, and shared amenities can make sure that residents are comfortable and that no one person has control over communal spaces.
- Tenant Screening & House Rules: Another detail of co-living rental properties is ascertaining compatibility among co-living tenants. As non-related adults, residents of a co-living property may aim to share their home with people who have lifestyles and personalities compatible with their own. This can be a tough challenge for rental property managers as it includes addressing expectations and responsibilities related to communal spaces. Preparing a clear set of house rules can help properly delineate these duties and set expectations for conduct among non-related residents.
- Legal & Zoning Regulations: An additional consideration is local laws regarding shared housing. Innumerable municipalities have strict regulations about the number of roommates and/or residents in different housing types, so it is majorly critical to do your research preparatory to offering a co-living rental.
How to Successfully Market Co-Living Rentals
There are plenty of unique elements of marketing a co-living rental property, so it is advisable to focus on the features that attract renters to co-living spaces to start with. By way of example, in your advertising, ascertain to consider close benefits like cost savings (precisely when compared to general, 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, in addition, consistently use social media and rental listing sites to locate and apply for rental homes. By putting into practice digital marketing strategies and highlighting key features in your marketing, you can very quickly attract the type of renters who are looking for co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are various reasons to explore co-living rentals as a unique and advantageous option for your properties. But, really, co-living may not be the top option for every rental property or location. Because of this, fully understanding all the benefits and challenges of managing co-living spaces is a beneficial first step.
If you’re interested in managing or investing in co-living spaces, please contact your local Real Property Management Metro office. We are here to give you the support you need to attentively make informed real estate decisions in Catonsville and nearby. Our team can offer pertinent guidance on market trends, investment strategies, and operational management. Reach out to us or call 410-290-3285 to explore more!
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