Managing Co-Living Spaces: A Guide for Modern Property Managers

As the rental market continues to evolve, co-living spaces are increasing in popularity for renters priced out of traditional rental housing. Co-living spaces appeal to tenants seeking affordability, mobility, and a built-in sense of belonging. People who rent are attracted to shared living arrangements since they are suitable and cost-effective. This involves young experts and students, remote workers, and city dwellers.

However, co-living arrangements deliver opportunities and challenges for rental property owners and managers. Let’s look more deeply at the growth of co-living spaces, some important factors for rental property owners and managers, and methods for successfully marketing these unique homes.

Understanding the Rise of Co-Living Spaces

Co-living is a real estate term that comes from the rise of housing startups that give homes designed to be shared by five or more adult roommates. These co-living spaces come in different types, from single-family homes renovated to accommodate non-related residents to floors in high-rise buildings converted into dormitory-style lodging and so on. In broader terms, co-living can refer to anything from master-planned communities to simply living with roommates.

Numerous reasons are driving the increase in the popularity of co-living spaces. For instance, rising rent expenses, particularly in larger cities, have pushed numerous renters to share space with non-related adult roommates. Cultural changes have also had an influence, as remote work culture and fluctuations in social connectivity have driven more renters to seek out community in new ways. For these reasons, co-living tends to appeal most to young professionals, students, city dwellers, and remote workers.

Key Considerations for Property Managers

If rental property owners and managers prefer to enter into the co-living market, they will have to encounter opportunities and problems. 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 the one hand, personal leases can offer renters more flexibility while delivering rental property managers more steadiness in rental income and lower turnover costs. One downside of this advantage is the need to manage individual leases and lease renewals for numerous people, which can drastically increase a property manager’s workload. Another choice is to offer group leases, which can reduce lease management but could also have other downsides.
• Furnishings & Shared Amenities: Another critical thing is how to design a co-living space for community living. While co-living property is different, in most cases, residents expect to have communal spaces that facilitate social events. Property managers might hook co-living renters by creating communal indoor and outdoor spaces. Delivering furnishings, decor, and shared amenities can guarantee that residents are comfortable and prevent the monopolization of communal spaces by any individual.
• Tenant Screening & House Rules: Another aspect of co-living rental properties is guaranteeing compatibility among co-living tenants. As non-related adults, residents of a co-living property might prefer to share their home with individuals who have lifestyles and personalities comparable to their own. This can be tough for rental property managers since they have to manage expectations and duties when it comes to communal spaces. Establishing a clear set of house rules can help describe these tasks and set expectations for conduct among non-related residents.
• Legal & Zoning Regulations: Another aspect to dwell on is local laws regarding shared housing. Before suggesting a co-living rental, you need to know if your municipality or town has stringent regulations about the number of roommates and/or residents in different housing types.

How to Successfully Market Co-Living Rentals

There are some unique elements of marketing a co-living rental property, so it’s critical to concentrate on the features that attract renters to co-living spaces in the first place. For example, in your commercials, make sure to indicate benefits like cost savings (particularly compared to standard 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 also mainly use social media and rental listing sites to locate and apply for rental homes. By using virtual advertising approaches and highlighting key features in your marketing, you can more simply attract the type of renters who are in need of 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 gainful option for your properties. Nonetheless, co-living might not be the ideal option for every rental property or location. This is why fully understanding all the benefits and challenges of managing co-living spaces is an important first move.

If you’re interested in managing or investing in co-living spaces, please communicate with your local Real Property Management Piedmont office. Our target is to give you the data you need to make smart real estate decisions in Highlands and adjacent areas. Our team can help you with things such as operational management, market trends, and investment strategies. Reach out to us or call 404-480-4820 to learn more!