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Here’s why you should incorporate coliving into your residential portfolio
The concept of coliving has gained immense popularity in recent years, with more people opting for this innovative living arrangement. As a corporate landlord looking to expand your residential portfolio, incorporating coliving spaces can be a lucrative opportunity. This approach to modern living emphasises community, collaboration, and affordability, making it an attractive option for urban dwellers seeking social connections and sustainable living.
Understanding the Concept of Coliving
You’ve probably heard the ‘term’ coliving before, but may be unsure of what it actually involves. Put simply, coliving is a modern housing concept that emphasises shared living spaces and a sense of community.
In a coliving space, residents have private bedrooms and share communal areas like kitchens, living rooms, and coworking spaces.
Coliving spaces are designed to encourage social interaction and personal growth, with a focus on sustainability and innovation.
It’s a fairly new concept that has emerged from various intersecting societal trends.
- Lower living costs: We all feel the effects of inflation and a higher cost of living. For many young people, the cost involved with renting a unit in urban areas excludes them from the rental market.
Coliving provides a cost-effective option for people who want to live in urban areas. By sharing spaces and resources, coliving residents can save money on rent, utilities, and other living expenses.
- More suited to nomadic lifestyle: Gen Z and millennials renters tend to be more nomadic than their predecessors, coliving provides a flexible living arrangement that is ideal for people who are on the move. Many coliving spaces offer short-term leases, which makes it easy for residents to move in and out as their circumstances change.
- Amenities and services: Coliving spaces typically offer a range of amenities and services that can make life easier for residents. These may include housekeeping, laundry services, fitness facilities, and communal areas for work or relaxation.
- Community-oriented living: Coliving offers a sense of community that is often missing in traditional living arrangements. Coliving spaces are designed to foster social interaction and collaboration, which can be particularly appealing to people who are new to a city or looking to expand their social circle.
The Benefits of Incorporating Coliving Spaces in your Portfolio
Aside from creating more liveable and community-oriented places to live, incorporating coliving spaces into your portfolio can lead to diversified revenue streams, a younger demographic of renters, and higher occupancy rates.
Coliving also offers unique amenities, such as shared workspaces, community events, and access to resources that appeal to urban professionals seeking a collaborative and sustainable lifestyle. In our recent tenant survey, 88% of respondents said that well maintained shared spaces are important when looking for a rental property.
Having these amenities and share space within co-living properties allows you to offer additional services that create more value for your tenants.
Overcoming the Challenges of Coliving
While coliving offers numerous benefits, it also comes with unique challenges like managing shared spaces, privacy concerns, and personality clashes.
Corporate landlords can mitigate these challenges by establishing clear rules and protocols, investing in quality furniture and appliances, and providing regular maintenance and cleaning services.
By using a digital app, landlords can easily manage multiple shared spaces, allow tenants to voice concerns through tenant surveys and report and track any maintenance issues that arise.
Coliving Trends and Opportunities in the Real Estate Market
The demand for coliving spaces is growing, with millennials and Gen Z seeking more affordable and sustainable living arrangements.
As urbanisation and remote work continue to rise, the coliving market is expected to grow significantly in the coming years.
Corporate landlords can leverage this trend by incorporating coliving spaces in their portfolio and adopting smart building technology to enhance the resident experience.
Strategies for Successful Coliving Implementation
Corporate landlords can implement a successful coliving strategy by conducting market research to identify the demand and target audience.
Developing partnerships with co-living operators or startups can help corporate landlords benefit from the operators' experience and knowledge of the coliving industry.
Furthermore, investing in quality amenities, and community events can help foster a positive and engaged resident community.
Are you ready for co-living?
Coliving is a promising opportunity for corporate landlords looking to expand their residential portfolio. With a focus on community, collaboration, and affordability, coliving spaces can attract a younger demographic of renters seeking sustainable and social living arrangements. Corporate landlords can leverage this trend by adopting innovative strategies and technologies to create a successful coliving operation.