Nevertheless, co-living arrangements introduce a mix of opportunities and challenges for rental property owners and managers. Below, we explore the rise of co-living spaces, key factors for rental property owners and managers, and effective strategies for successfully marketing these modern housing options.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term that comes from the rise of housing startups that offer homes designed to be shared by five or more adult roommates. Today, co-living spaces range from single-family homes renovated to accommodate non-related residents to high-rise buildings converted into dormitory-style lodging. In general, co-living may describe settings from master-planned communities to simply living with roommates.
Multiple reasons explain the increase in popularity of co-living spaces. For example, escalating rental prices in larger cities have encouraged renters to share space with non-related adult roommates. At the same time, the remote work culture has led renters to seek out community in new ways. Therefore, co-living is particularly attractive to professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
For rental property owners and managers exploring the co-living market, both opportunities and obstacles exist. Some of the key factors to consider include:
- Lease Structures & Flexibility: There are distinct pros and cons to renting a single unit or property to multiple tenants. Individual leases can offer renters more flexibility while giving rental property managers steady rental income and lower turnover costs. The challenge lies in the need to manage individual leases, lease renewals, and more renters, raising the property manager’s workload. Conversely, managers can offer group leases to reduce lease management, though this alternative has other drawbacks.
- Furnishings & Shared Amenities: A vital component is how to design a co-living space for community living. In many co-living properties, residents look for communal spaces that foster interaction. Property managers can appeal to co-living renters by creating inviting communal indoor and outdoor spaces. Adding shared amenities helps ensure residents are comfortable while balancing the use of communal spaces.
- Tenant Screening & House Rules: With co-living rental properties, ensuring compatibility among co-living tenants is crucial. Residents of a co-living property may prefer to live with others whose lifestyles and personalities match. For rental property managers, this requires balancing expectations and rules about communal spaces. A clear set of house rules sets expectations for conduct among non-related residents.
- Legal & Zoning Regulations: Managers should also research local laws regarding shared housing. Many municipalities enforce strict regulations about the number of roommates and/or residents in different housing types, making it necessary to review legal requirements before offering a co-living rental.
How to Successfully Market Co-Living Rentals
There are several unique elements of marketing a co-living rental property and understanding them is essential if you want to attract renters to co-living spaces. Effective promotions should focus on benefits like cost savings, greater opportunities for community engagement, and proximity to key locations.
Most renters looking for co-living spaces are attracted to homes that provide easy access to urban centers and nearby local arts and entertainment options. They also turn to rental listing sites to locate and apply for rental homes. By highlighting key features in your marketing, you position your property to attract the type of renters interested in co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are many reasons to explore co-living rentals as a promising and rewarding option for your properties. However, co-living is not always the right option for every rental property or market. For this reason, understanding all the benefits and challenges of managing co-living spaces is an essential first step.
If you are interested in managing or investing in co-living spaces, please contact your nearby Real Property Management Metro Detroit office. Our team is here to give you the guidance you need to make thoughtful real estate decisions in Royal Oak. We can advise on rental trends, portfolio growth, and operational solutions. Reach out to us or call 248-808-6550 to get started!