The Rise of Co-Living

In recent times, we’ve noticed the rise of co-living; an increase in the number of people willing to live together in a rental house or apartment, such as two professional couples, or a multi-generational family. This trend, often referred to as co-living or co-habiting, has gained popularity for various reasons, including affordability concerns, housing shortages, and evolving lifestyle preferences.

From the perspective of our landlords, co-living presents both opportunities and challenges, with the need to balance rent maximization and property maintenance considerations.

So let’s take a look at the factors contributing to the rise of co-living, examine it from a landlord’s point of view, and discuss strategies to make co-living appealing to this growing demographic.

The Growing Popularity of Co-Living

Affordability Concerns:

One of the primary reasons behind the surge in co-living arrangements is the increasing cost of living in many urban areas. Skyrocketing rents and housing prices have made it difficult for individuals to afford their own homes or apartments. Co-living offers an affordable alternative, allowing people to share expenses such as rent, utilities, and even groceries, which can significantly reduce their monthly expenditures.

Housing Shortages:

The Tweed Coast and Gold Coast regions are experiencing a shortage of affordable housing options. This scarcity has driven people to look for creative solutions, and co-living has emerged as a viable choice. It allows more individuals to access housing in areas where available rentals are limited.

Changing Lifestyles:

Modern lifestyles are evolving, and people are increasingly valuing experiences and connections over material possessions. Co-living offers a sense of community and shared experiences that resonate with these changing priorities. Many individuals prefer the social aspect of co-living, particularly after the experience of isolation during Covid restrictions.

The Landlord Perspective

From a landlord’s perspective, catering to the co-living demographic can be a lucrative option, but it also presents unique challenges.

Maximizing Rent:

Landlords can capitalize on the co-living trend by configuring their properties to accommodate multiple residents. This may involve subdividing larger units or providing furnished rooms with shared common areas. By doing so, landlords can potentially increasing their overall rental income.

Maintenance and Wear and Tear:

One challenge landlords face with co-living is the increased wear and tear on the property. More occupants mean higher usage of utilities, appliances, and common areas. To mitigate this, landlords should ensure their property manager is conducting regular inspections, and consider a larger bond amount (subject to legislative requirements of course) to cover potential damages.

Lease changes:

It is normal in these types of tenancies to receive requests for changes in occupants, such as one tenant being removed from the lease when they vacate and then requesting approval for a new house-member once someone is chosen. It is important that the property manager thoroughly screens all new potential occupant’s rental history before approval is given to amend the tenancy with a new occupant, so that problems are avoided.

Pets:

Many individuals who opt for co-living spaces are also pet owners, so Landlords seeking to appeal to this demographic should consider pet-friendly spaces, such as ensuring fencing is secure. By accommodating pets, landlords can attract a larger pool of tenants and create a more inclusive and homely atmosphere within their properties. However, it’s essential to strike a balance between accommodating pet owners and ensuring the comfort and safety of all residents by establishing clear pet guidelines and rules.

The Verdict?

As long as this trend is managed effectively, the rise of co-living can offer an advantageous situation for both landlords and tenants where housing shortages and high costs of living persist. Landlords who adapt to this trend by offering attractive co-living spaces can tap into a thriving market. By carefully navigating this option with the help of a reliable property manager (read: ‘What to look for in a property manager’ here) this will ensure problems aren’t encountered down the line. In an era where community and connection are highly valued, co-living presents a promising opportunity for both landlords and residents alike.