What is Coliving?
A Coliving property is a type of residential real estate investment property designed for shared living, where multiple, unrelated people rent private, furnished bedrooms while sharing common spaces such as the kitchen, living room, and bathroom.
Think of it as an upgraded, modern version of a roommate situation—except it’s intentionally designed and managed to foster community, reduce housing costs, and provide convenience.
The Main Features of a Coliving Property:
From a Member's Perspective:
Coliving is appealing to Renters who want affordability, flexibility, and community.
Why Members like it:
Private Space: Each resident typically has their own furnished bedroom with bed, desk, nightstands, TV, sometimes with a private bathroom.
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Lower Costs: Monthly Room Rent is a lot less expensive than leasing a studio or 1-bedroom apartment in the same city.
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Convenience: Fully furnished, move-in ready, and often managed professionally (like student housing but for adults).
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Shared Spaces: Residents share common areas such as kitchens, living rooms, laundry facilities, and outdoor spaces.
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All-Inclusive Rent: Rent covers utilities, Wi-Fi, furniture, and sometimes cleaning services, making budgeting simpler.
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Community Living: Coliving emphasizes social interaction, networking, and collaboration among residents. Some operators even organize events or community activities.
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Shorter Leases: Many Coliving providers offer flexible and shorter lease terms, making it attractive for traveling nurses, young professionals, digital nomads, someone trying to save a down payment for a house, financially getting back on their feet, coming out of a divorce, students or just people relocating for a new job.
From an Investor's Perspective:
At Coliving properties are popular with Investors because they can generate higher rental income than a traditional single-family rental by charging per room instead of per unit.
Why Investors like it:
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The model is to divide single family homes into multiple furnished bedrooms that can be rented at a lower monthly cost than a traditional apartment or rental.
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The strategy is to turn them into additional bedrooms. Thereby, turning a 4 bed, 3 bath house into 7 bedrooms converting underutilized common area spaces such as a den, office, living or dining room. Now you are renting the same house with 7 bedrooms at an average of $750 a month per room.
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Higher ROI: Instead of renting a 4-bedroom home as an annual rental for $2,200/month, you're generating $5,250 of monthly rent income!
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Fewer Vacancies: Even if one tenant leaves, the property still generates income from the other rooms.
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Strong Demand: Rising housing costs and remote work culture fuel demand for affordable, flexible living.
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Scalability: Operators can replicate systems across multiple properties.