Co-Living vs Traditional Property Management: Could Your Property Become a Co-Living Rental?

You’ve probably heard about co-living popping up as a popular rental option, but how does it really compare to the traditional way of leasing a property? And more importantly, could your home be a good fit for co-living?

Let’s break it down.

How Traditional Rentals Work

With traditional rentals, you lease the whole property to one tenant or household under a single agreement. It’s straightforward, reliable, and usually involves fewer day-to-day hassles.

What Makes Co-Living Different?

• Co-living means renting out individual rooms to separate tenants who share common spaces like the kitchen, bathroom, lounge, and outdoor areas. Each tenant has their own lease, making it more flexible.
• This setup is especially popular with students, young professionals, or newcomers who want affordable rent but also a sense of community.

What You Need to Know About Co-Living

• You can legally rent rooms to up to three single tenants. If there are four or more tenants, the property becomes a rooming house, which requires a different licence and follows stricter rules.
• Co-living can bring in more rental income because you are renting by the roomHowever, keep in mind, as a co-living property landlord, you will still be required to cover items usually not required by a traditional rental such as utilities since these homes aren’t separately metered. That can add to your costs.
• Managing co-living properties takes more time. With several tenants, there’s more communication, maintenance, and coordination involved, which usually means higher management fees.
• All shared areas must be fully furnished and comfortable. This not only attracts tenants but also helps meet co-living standards.

Most residential properties can become co-living spaces, but it is important to weigh the pros and cons. If you are looking to boost your rental income and don’t mind the extra work involved in managing multiple tenants, co-living could be a great option.

However, if you prefer a simpler setup with just one lease and fewer tenants, traditional renting might suit you better. It is also vital to remember that renting to four or more separate tenants without the proper licence is illegal, so knowing the rules and staying compliant is essential.

If you want to find out whether co-living could work for your property or need guidance on the legal and management side of things, we’re here to help.

Interested in Exploring Co-Living?

Reach out for a free 15-minute, no-obligation chat and let’s explore your options together. (links)