As the rental market continues to evolve, co-living spaces are becoming 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 attracted to shared living arrangements that offer convenience and cost savings.
But, co-living arrangements endow opportunities and challenges for rental property owners and managers. Let’s look closer at the rise of co-living spaces, various major considerations for rental property owners and managers, and proven strategies for successfully marketing these unique properties.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that stems from the rise of housing startups providing homes designed to be shared by five or more adult roommates. These co-living spaces 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 beyond. In general terms, co-living can indicate anything from master-planned communities to straightforwardly living with roommates.
A few number of factors are driving the increase in popularity of co-living spaces. For instance, rising rent prices, particularly in larger cities, have forced a lot of renters to share space with non-related adult roommates. Cultural shifts have similarly an effect, as remote work culture and changes in social connectivity have motivated more renters to seek out community in new ways. Because of this, co-living tends to charm most young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers going to move into the co-living market will be faced with both opportunities and problems. A few 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. Despite that, individual leases can offer renters more flexibility while giving 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 lots of people, which can inevitably increase a property manager’s workload. The alternative is to offer group leases, which can reduce lease management, though may have other potential weak points.
- Furnishings & Shared Amenities: Another significant consideration is how to design a co-living space for community living. While arrangements change, in most instances, residents of co-living properties long to have communal spaces that can help facilitate gatherings. Property managers can appeal to co-living renters by building communal indoor and outdoor spaces. Providing furnishings, decor, and shared amenities can see to it 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 making sure of compatibility among co-living tenants. As non-related adults, residents of a co-living property may desire to share their home with people who have lifestyles and personalities compatible with their own. This can be a problem for rental property managers as it includes dealing with expectations and responsibilities related to communal spaces. Creating a clear set of house rules can help delineate these duties and set expectations for conduct among non-related residents.
- Legal & Zoning Regulations: An additional consideration is local laws regarding shared housing. Many municipalities have strict regulations about the number of roommates and/or residents in different housing types, so it is necessary to do your research prior to offering a co-living rental.
How to Successfully Market Co-Living Rentals
There are several unique elements of marketing a co-living rental property, so it is important to concentrate on the features that attract renters to co-living spaces to begin with. For instance, in your advertising, make it a point to lay stress on benefits like cost savings (particularly when compared to usual rental homes), community engagement, and location.
Renters looking for co-living spaces are frequently attracted to properties with easy access to urban centers and local arts and entertainment options. They similarly always 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 searching 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 useful option for your properties. But, co-living may not be the optimum option for every rental property or location. This is exactly why fully understanding all the benefits and challenges of managing co-living spaces is a really important first step.
If you’re interested in managing or investing in co-living spaces, please contact your local Real Property Management Northern Arizona office. We are here to endow the support you need to make informed real estate decisions in Kingman and nearby. Our team can offer sure guidance on market trends, investment strategies, and operational management. Reach out to us or call 928-757-7368 to know more!
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