A simple guide on Co-Living for Landlords
Co-living has been around for many years in the UK landlords. Student housing have been snapping up Properties around universities for decades. With universities in every city, all kinds of properties from 3-25 bed homes are used as student housing. More recently nursing homes, offices and even police stations have been converted to a co-living space. They typically comprise a separate bedroom with shared bathrooms, kitchen, and living space.
Co-living is merely an extension of this market for different sectors who also benefit from the social aspect of community living and reduced rents. Instead of bedrooms, the separate living space is often an en-suite, with a small living space.
Typical renters of co-living spaces
Professionals in London
Housing in London are crazy high. People just are not able to rent due to large rents, that a large proportion of people in London live as lodgers. This is often in poor quality housing and is far from satisfactory, often leading to issues and other disputes. Also there is the other end of the spectrum where professionals in London that could easily afford an apartment but appreciate luxury co-living.
Co-living accommodation is often targeted to graduates or postgraduates and young professionals who recently left university. They like it as the style of living is an extension of student life, but just better quality and more professional. It appeals to many people (even young couples), especially those that may be moving to a new city after getting their first job and without a network of friends. It also help people budget better as living in a city can be expensive. A small apartment may not be affordable and, therefore, their only other option would be to lodge with a landlord.
Why should landlords consider co-living ?
The numbers add just up
The cost of buying property suitable for a professionals close to the city is going to be far greater than for students accommodation.
It’s estimated that people in the UK spend around 40% of their income on rent. Graduates and young professionals in London typically earn from £25-45,000 meaning they now have more money to spend on rent. Landlords can obviously make far more on properties with more bedrooms but the landlord should also take in to account the tenants will expect additional benefits, like a weekly cleaner, bills inclusive and broadband. Please do your numbers correctly as co-living may not make sense all the time.
With typical renters being new graduates, if you rent small apartments they can just afford, many are still readjusting to life as a normal civilian. The 9 am office bell means drunken nights are out of the question on a school night, but there are still the weekends. Getting to work every day rather than attending a few lectures a week, is stressful enough for new graduates, so weekends spent cleaning are things that graduates have yet to adapt to.
That’s where communal living in a large space is of huge benefit to both new graduate renters and landlords. Shame is a great leveler and community living helps people to raise their game and living standards to acceptable. When kitchen spaces are beautifully designed with dishwashers, few will abuse the environment and cause damage and leave a mess. So money spent on high spec good quality and long-lasting kitchen appliances and fittings will last.
Regular Checks on your Property
In addition, you can offer room cleaning, once a week or a fortnight, in a more of a “hotel-style” arrangement rather than student service. Few tenants will turn this service down, so you’re making sure your property stays clean on a weekly basis. And it’s all accounted for in your all-inclusive cost which tenants expect to pay extra for and are glad to. Not just that, it’s perfectly acceptable to pay a cleaner the minimum wage, so it’s not a huge outlay.
Your cleaner can make sure the bathrooms are spotless for tenants improving their satisfaction, and that the kitchen including ovens do not become splashed and dirty.
Extras and add-ons
Co-living spaces often offer suites that have one communal area and kitchen and may have around three to six bedrooms. And these suites may be connected to other suites which all have the use of facilities such as a yoga studio or gym. More luxurious co-living spaces with a large number of rooms may also have a swimming pool.
All of these facilities can be offered as free sweeteners. Along with superfast 5G wifi and communal workspaces. However, many co-living spaces also have a bar, coffee lounge, and provide breakfast and evening meals. If you fancy yourself as something of a hotelier, these are also lucrative revenue sources in co-living spaces. But you need to have enough rooms to make the service worthwhile financially.
We at Letting Options 4U do can help you set up and manage your co-living property properly. Please contact us to find out more.