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Over the past decade, the co-working trend has disrupted traditional approaches to buying and leasing office space. The rise of remote work has facilitated new ways of doing business and redefined what it means to be an employee.
As a result, fresh business models and interesting new players have emerged in the arena of commercial real estate. Workspaces, however, are far from the only places facing disruption. Accommodation alternatives are rapidly emerging too.
The term ‘co-living’ refers to residential real estate offerings with communal facilities and shared spaces that move the emphasis away from buying and renting homes.
The focus is instead on individual or group access to attractive accommodation without the burden of ownership. These models aim to strike a balance between privacy and community, offering high standards of accommodation with added services to help residents achieve a better quality of life.
The co-living units are often being marketed to millennials.
Everyone is trying to wrap their arms around new living concepts for millennials.
In the USA, the one-room rentals can be cheaper for renters than renting the entire apartment.
For example, tenants pay $1,000 a month to rent a room than the entire apartment. Renting an apartment in Chicago, Miami, or other major cities often costs double that.
The idea is that, if you’re 22-years-old, and you just got your first job out of college, you’re looking for the cheapest point of entry in a market. All you want is a room.
Developers say co-living apartments will cost more to build than other apartments, however. Each room will have a separate bathroom. Many of the units will also come partially furnished with built-out closets and TVs.
However, developers are attracted to the idea that they can charge more for a co-living unit, collecting rent from multiple tenants, than if they rented the space to just one tenant.
People who choose co-living buildings pay rent for a private bedroom (sometimes with an en-suite bathroom) but share common spaces, such as kitchens, living rooms, or lounge-type spaces.
These types of residences are mostly in big cities – where renters may not know anyone – so the benefit of this living arrangement is an instant community and planned social activities for the building.
Most co-living properties offer temporary leases. With the right blend of people, the community aspect is really cool, and you meet some incredible people who can become friends, developers say.
Co-living is getting noticed as one of the biggest trends in real estate throughout the world. It’s a new way of living in the 21st century, even though it’s a lifestyle that existed for generations.
Now a surge of real estate developers and companies are seeing more opportunity in this growing.
The costs of co-living are typically 20 percent to 25 percent less per month than standard rentals. The bedroom is fully furnished and includes all utilities.
Renters even receive sheets, towels, maid service, and free internet. Some companies entice new residents with chef-grade kitchens, swimming pools, pool tables, gyms, maker’s workshops, recording studios, and movie screening rooms.
But the flexibility that co-living properties offer is usually what wins over tenants. Once they are part of the co-living community, renters can change locations.
