As the rental market continues to evolve, co-living spaces have become a noteworthy alternative for renters priced out of traditional rental housing. Co-living spaces strongly appeal to tenants seeking affordability, flexibility, and ready-made connections with others. From remote workers and city dwellers to students and early-career professionals, renters increasingly prefer shared living arrangements that combine financial ease with convenience.
However, co-living arrangements also create considerable opportunities and challenges for rental property owners and managers. In this guide, we outline the growth of co-living spaces, practical details for rental property owners and managers, and proven approaches for successfully marketing these evolving housing opportunities.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term influenced by the rise of housing startups that design homes designed to be shared by five or more adult roommates. These co-living spaces span single-family homes renovated to accommodate non-related residents to high-rise buildings converted into dormitory-style lodging. In wider use, co-living can mean anything from master-planned communities to simply living with roommates.
Several reasons are behind the increase in popularity of co-living spaces. In larger cities, high housing costs push renters to share space with non-related adult roommates. At the same time, the remote work culture motivates renters to seek out community in new ways. Thus, co-living often resonates with professionals, students, city dwellers, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers preparing to step into the co-living market will discover both possibilities and complications. Some of the key factors to consider include:
- Lease Structures & Flexibility: There are practical pros and cons to renting a single unit or property to multiple tenants. Individual leases can offer renters more flexibility, giving rental property managers consistent rental income and lower turnover costs. However, this requires managers to manage individual leases, lease renewals, and tenant arrangements, increasing the property manager’s workload. As an alternative, they may offer group leases to reduce lease management, though this has its own downsides.
- Furnishings & Shared Amenities: Another important aspect is how to design a co-living space for community living. In many co-living properties, communal spaces are central to tenant satisfaction. Property managers can appeal to co-living renters by providing inviting communal indoor and outdoor spaces. Supplying shared amenities ensures residents are comfortable and maintains fairness in communal spaces.
- Tenant Screening & House Rules: For co-living rental properties, success depends on ensuring compatibility among co-living tenants. Since residents of a co-living property are unrelated, they often value roommates with similar lifestyles and personalities. Rental property managers need to manage expectations tied to communal spaces. A clear set of house rules establishes guidelines and sets expectations for conduct among non-related residents.
- Legal & Zoning Regulations: Finally, it’s necessary to be familiar with local laws regarding shared housing. Many municipalities establish regulations about the number of roommates and/or residents in different housing types, so managers should confirm compliance before offering a co-living rental.
How to Successfully Market Co-Living Rentals
One of the main unique elements of marketing a co-living rental property is understanding what truly attracts renters to co-living spaces. Your ads should emphasize benefits like cost savings, more opportunities for community engagement, and convenient proximity.
Most renters looking for co-living spaces prefer properties with easy access to urban centers and engaging local arts and entertainment options. They typically turn to rental listing sites to locate and apply for rental homes. By thoughtfully highlighting key features in your marketing, you can effectively attract the type of renters who are seeking co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are many reasons to explore co-living rentals as an appealing and sensible option for your properties. That said, co-living may not be the right option for every rental property or market. For this reason, understanding all the benefits and challenges of managing co-living spaces is the most important first step.
If you’re interested in managing or investing in co-living spaces, reach out to your local Real Property Management California Coast office. We can help provide the resources you need to make confident real estate decisions in Hawthorne. Our team delivers insights on rental market trends, long-term strategies, and management practices. Reach out to us or call 310-535-2150 to discover more!
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
