Related Articles
VIEW ALL ARTICLES
Offering affordability, privacy and community, Co-Living fulfils the needs of a wide range of tenants. It’s a new rental market presenting exciting opportunities for investors.
Research suggests there is a rapidly growing demand for homes in the shared living rental market. No longer just the domain of university students or young singles, shared living has been upgraded, with a new rental option, Co-Living in purpose-built homes. This modern version of communal living is often more affordable than traditional renting. It also comes with the perks of private facilities, combined with common areas for socialising.
For investors, these properties offer three rental incomes with independent tenant leases. This means achieving well above average rental yields and strong investment performance.
Unlike shared rental properties where privacy is often compromised, dedicated Co-Living homes boast features including ensuite bathrooms for each tenant, data points in every bedroom and lockable pantries. On the flip side, shared common and entertainment areas allow for social connectivity. For convenience, Co-Living homes are fully furnished with utilities included.
As it provides the best of all worlds, Co-Living attracts many demographics. In today’s sharing economy, it’s an affordable and often preferred means of living for students and young people in general. Many more workers are embracing a digital nomad lifestyle or relocating, and Co-Living provides an attractive housing solution for them.
Furthermore, seniors appreciate the alternative to expensive aged care facilities, in a home that offers both independence and company. For singles, renting a room in a custom-designed house with utilities included is extremely appealing, especially in comparison with the cost of traditional shared house living.
As it provides the best of all worlds, Co-Living attracts many demographics.
Rental yields of up to 10% are possible with Co-Living; more than double a traditional investment property.
For the ease of both tenants and investors, Co-Living properties are managed by specialist property managers. Services include tailored solutions to ensure the delivery of rental yields, obtaining and installing furniture, inspections, insurance coverage and tenant matching.
In terms of the matching process, once the first tenant is selected, they’re offered a choice of housemates. Ultimately, the owner decides who leases the property, however, this process helps to ensure successful Co-Living among tenants. With regard to general maintenance and property damage, each tenant has a bond to alleviate risk. This joins landlord insurance for the owner.
For investors, Co-Living properties offer superior rental yields and capital growth potential. Rental yield numbers of up to 10% are possible which is more than double a traditional investment property. Rather than collecting rent from one paying tenant, investors collect numerous separate income streams from one property, depending on the number of bedrooms.
When you choose to sell the investment, it’s a simple process to convert a Co-Living space to a regular home.
Research reveals more than 55,000 tenants are currently in this market. Co-Living tenants average four to five-year leases and may pay $50 a week more than advertised. All in all, the rise of Co-Living is a ‘win win’ for both the new generation of tenants and savvy investors.
.svg)
