Sharing spaces is not an uncommon concept. Co-working spaces are also now a fixture in the industry. But have you heard of co-living? It turns out that Millennials are increasingly open to this type of living situation.
What is it, and how can you make it your niche as a real estate investor?
What is co-living?
Co-living is sort of like living in an apartment with a roommate. In this case, the setup is usually a renovated multi-unit residence where young adults with similar interests dwell. Living arrangements are flexible and residents are able to handle leases with ease.
The multi-unit residence often feature communal spaces where its residents (sometimes called “members”) can gather and mingle. Some properties even feature shared workspaces. In addition to these features, members also have access to an array of services, from high-speed Internet connection to laundry.
All of these come with a price, of course, in the form of monthly rental fees.
Why are Millennials drawn to co-living?
Not all Millennials like the idea of co-living, but for those who are drawn to the concept, co-living fits well with their lifestyle preferences.
- They enjoy a variety of amenities. As mentioned earlier, rental fees in co-living often include a wide selection of features and amenities. Rent prices vary, but considering the whole package, a lot of Millennials think co-living allows them to save money.
- Sense of community. Extraverted Millennials find co-living attractive as it allows them to be in the midst of like-minded people. It is a great avenue to make lifelong friends or even collaborators in business or creative pursuits.
- Central location. Co-living allows Millennials to live in fantastic neighborhoods without paying the full price tag. And with the usual costs of living divided and included in the monthly rent, co-living makes living in the city convenient for young adults.
- Flexibility. Millennials who are constantly on the go find co-living to match the level of flexibility they need. Leases are usually hassle-free; they can match unpredictable schedules and offer the kind of elasticity not usually offered when you rent alone.
Carving a space in the co-living industry
Experts have agreed that co-living brings positive growth to the multi-family property market, not just in Atlanta, but in different cities across the United States. If you want to maximize the potential of this trend, here are a couple of things to keep in mind:
- Renovate to suit your market’s taste. If your target market is Atlanta’s creative set, incorporate tasteful design in communal spaces. Offering high-speed internet and well-appointed workspaces can be a big bonus if your market is Atlanta’s young professionals.
- Hire a property manager. Don’t hesitate to seek the help of a professional to manage tenants, leases, and the overall maintenance of your co-living property.
- Offer some degree of privacy. Just because it’s co-living doesn’t meet all members have to constantly share the space. Limit the number of members to suit the size of the property. For instance, if your multi-unit dwelling has five bedrooms, set the bar at five tenants.