As the rental market continues to evolve, co-living spaces are becoming a vibrant and appealing choice for renters priced out of traditional rental housing. Co-living spaces appeal to tenants seeking affordability, mobility, and an excellent feeling of community. From young professionals and students to remote workers and city dwellers, renters are excited about shared living arrangements that provide comfort and cost savings.
However, co-living arrangements bring opportunities and challenges for rental property owners and managers. Let’s explore the exciting growth of co-living spaces, significant considerations for rental property owners and managers, and effective tactics for successfully marketing these unique properties.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that is seen from the rise of housing startups delivering 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 terms, co-living can refer to anything from master-planned communities to simply living with roommates.
Many elements give rise to the increase in popularity of co-living spaces. For example, higher rent prices, particularly in larger cities, have encouraged many renters to share space with non-related adult roommates. Changing cultures have positively influenced our lives, as remote work culture and changes in interaction with others have inspired more renters to seek out community in new ways. Co-living is a fantastic option that resonates with young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers seeking to move into the co-living market will be experienced with both advantages and disadvantages. 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. Individual leases can offer renters more flexibility while also giving rental property managers an opportunity for 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 many people, which can greatly increase a property manager’s workload. The alternative is to offer group leases, which can reduce lease management but have other potential downsides.
- Furnishings & Shared Amenities: Another key consideration is how to design a co-living space for community living. While arrangements vary, in many cases, residents of co-living properties anticipate having communal spaces that facilitate gatherings. Property managers can appeal to co-living renters by designing communal indoor and outdoor spaces. Providing furnishings, decor, and shared amenities can ensure that residents are comfortable and that no one person has control over communal spaces.
- Tenant Screening & House Rules: Another feature of co-living rental properties is ensuring compatibility among co-living tenants. As non-related adults, residents of a co-living property can enjoy the opportunity to share their home with individuals who have lifestyles and personalities that harmonize with their own. This can be a difficulty for rental property managers as it involves supervising outlooks and accountabilities related to communal spaces. Having a clear set of house rules can help clarify these obligations and create positive expectations for conduct among non-related residents.
- Legal & Zoning Regulations: It is important to keep in mind the local laws regarding shared housing. Some towns have stringent regulations about the number of roommates and/or residents in different housing types, so it’s a great idea to conduct your research before presenting a co-living rental.
How to Successfully Market Co-Living Rentals
There are some unique elements of marketing a co-living rental property, making it essential to showcase the characteristics that attract renters to co-living spaces from the start. For example, in your advertising, be sure to highlight benefits like cost savings (especially when compared to traditional rental homes), community engagement, and location.
Renters looking for co-living spaces tend to be enticed to properties with easy access to urban centers and local arts and entertainment options. They also primarily utilize social media and rental listing sites to locate and apply for rental homes. By adopting online advertising techniques and highlighting key features in your marketing, you can more simply attract the type of renters who are looking for 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 rewarding option for your properties. While co-living might not suit every rental property or location, there are plenty of exciting possibilities to explore. This is why fully understanding all the benefits and challenges of managing co-living spaces is a great first step.
If you’re interested in managing or investing in co-living spaces, feel free to reach out to your local Real Property Management Solutions office. We are available to offer the support you need to make informed real estate decisions in Oregon City and nearby. Our team can provide insights on market trends, investment plans, and operational management. Reach out to us or call 503-224-3002 to discover more!
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