As the rental market continues to evolve, co-living spaces are becoming the go-to choice for renters priced out of traditional rental housing. Co-living spaces are the perfect solutions for tenants seeking affordability, flexibility, and a built-in sense of community. From young professionals and students to remote workers and city dwellers, renters are interested in shared living arrangements that promise both convenience and budget-friendly options.
Nevertheless, co-living arrangements bring opportunities and challenges for rental property owners and managers. We’ll explore the incredible rise of co-living spaces, highlight essential tips for rental property owners and managers, and techniques 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 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 more. Generally, co-living can refer to anything from master-planned communities to simply living with roommates.
Numerous reasons are pushing the increase in popularity of co-living spaces. For illustration, growing rent fees, particularly in larger cities, have required various renters to share space with non-related adult roommates. Cultural swings have also had an impact since remote work culture and adjustments in social connectivity have forced more renters to seek out community in new ways. For these motives, co-living is a perfect match for young professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers eager to dive into the co-living market will encounter a mix of golden opportunities and daunting challenges along the way. 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. On one side of the coin, individual leases can offer renters more flexibility while presenting rental property managers with more constancy in rental income and lower turnover costs. On the flip side of that benefit lies the challenge of managing individual leases and lease renewals for several people, which can really ramp up a property manager’s workload. One option to consider is to offer group leases, which can reduce lease management, yet they may come with their own set of challenges.
- Furnishings & Shared Amenities: A vital aspect to ponder is how to design a co-living space for community living. While arrangements vary, in many cases, residents of co-living properties expect to have communal spaces that facilitate gatherings. Property managers can appeal to co-living renters by designing communal indoor and outdoor spaces. Offering 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: One more thing to consider about co-living rental properties is ensuring compatibility among co-living tenants. As non-related adults, residents of a co-living property often seek to create a harmonious home with people who have lifestyles and personalities matched with their own. This can be a test for rental property managers since it includes dealing with expectations and duties related to communal spaces. Having a clear set of house rules can help define these obligations and set expectations for conduct among non-related residents.
- Legal & Zoning Regulations: Another factor to think about is local laws regarding shared housing. Some cities have stern regulations about the number of roommates and/or residents in different housing types, so it is critical to conduct your investigation before offering a co-living rental.
How to Successfully Market Co-Living Rentals
There are some unique elements of marketing a co-living rental property, so it is important to underline the traits that attract renters to co-living spaces to begin with. For illustration, in your marketing, remember to underline benefits like cost savings (mainly when compared to regular rental homes), community engagement, and area.
Renters looking for co-living spaces are commonly enticed to properties with easy access to urban centers and local arts and entertainment options. They also mainly utilize social media and rental listing sites to locate and apply for rental homes. By leveraging the power of digital marketing strategies and highlighting key features in your marketing, you can effortlessly attract the type of renters who are on the hunt 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 gainful option for your properties. Yet, co-living may not be the best choice for every rental property or location. This is why entirely understanding all the benefits and challenges of managing co-living spaces is an essential first step.
If you’re interested in managing or investing in co-living spaces, don’t hesitate to reach out to your local Real Property Management Resources office. We are here to provide the support you need to make informed real estate decisions in OKC and nearby. Our team can offer guidance on market trends, investment strategies, and operational management. Reach out to us or call 405-787-4429 to learn more!
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