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

As the rental market continues to evolve, co-living spaces are an increasingly prevalent selection for renters priced out of traditional rental housing. Co-living spaces allure tenants seeking affordability, flexibility, and a built-in sense of community. From young professionals and students to remote workers and city dwellers, renters are drawn to shared living arrangements that offer convenience and cost savings.

However, co-living arrangements present opportunities and challenges for rental property owners and managers. We’ll analyze the growing popularity of co-living spaces, the factors that rental property owners and managers must take into account, and the best ways to successfully market these one-of-a-kind rentals.

Understanding the Rise of Co-Living Spaces

Co-living is a real estate term that results from the rise of housing startups presenting homes designed to be shared by five or more adult roommates. These co-living spaces take different kinds, 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 wider terms, co-living can refer to anything from master-planned communities to simply living with roommates.

Many aspects are driving the increase in the popularity of co-living spaces. For instance, rising rent prices, especially in larger cities, have forced many renters to share space with non-related adult roommates. Cultural developments have played a role, as remote work culture and transformations in social connectivity have triggered more renters to seek out community in new ways. These factors contribute to the fact that young professionals, students, city dwellers, and remote workers are the typical co-living tenants.

Key Considerations for Property Managers

Rental property owners and managers looking to move into the co-living market will be encountered 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. One positive aspect of individual leases is they can offer renters more flexibility while delivering rental property managers more constancy in rental income and lower turnover costs. On the flip side, a property manager’s workload can get substantially heavier when they have to manage individual leases and lease renewals for several tenants. Another option is to offer group leases, which can reduce lease management but come with their own set of drawbacks.
• Furnishings & Shared Amenities: Another critical factor is how to design a co-living space for community living. While every co-living property is unique, most people expect communal spaces where they can host parties and other social events. Property managers can magnetize co-living renters by establishing communal indoor and outdoor spaces. Granting furnishings, decor, and shared amenities can ensure that residents are comfortable and that no one individual has authority over communal spaces.
• Tenant Screening & House Rules: Another consideration of co-living rental properties is ensuring 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 compatible with their own. This can be complicated for rental property managers as it entails managing expectations and duties associated with 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 thing to think about is local laws regarding shared housing. Some towns have firm regulations about the number of roommates and/or residents in different housing types, so it is critical to do your research before proposing 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 vital to promote the qualities that attract renters to co-living spaces to begin with. For illustration, in your advertising, don’t forget to mention benefits like cost savings (primarily when compared to old-style rental homes), community engagement, and location.

Renters looking for co-living spaces are often enticed 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 employing online marketing methods and highlighting key features in your marketing, you can more straightforwardly attract the type of renters who want 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 profitable option for your properties. Nevertheless, co-living may not be the best alternative for every rental property or location. This is why completely understanding all the benefits and challenges of managing co-living spaces is a critical first step.

If you’re interested in managing or investing in co-living spaces, don’t hesitate to speak with your local Real Property Management Excelled office. In order to help you make educated real estate decisions in Pierce County and nearby areas, we are available to offer any assistance you may require. Investing tactics, operational management, and market trends are all areas in which our team can provide advice. Reach out to us or call 253-275-5999 to learn more!