Co-living houses are becoming increasingly popular among property investors due to their high rental yields, efficient space utilization, and strong market demand. Compared to traditional rental properties, they present a lucrative investment opportunity.
What is a Co-Living House Design?
A co-living house is designed to create shared living spaces within a single-family home or multi-unit residence. The architectural and interior design focuses on fostering community living by combining private bedrooms or suites with shared common areas and amenities. The key benefits of this concept include affordability, social interaction, and efficient space usage.
Key Features of a Co-Living House Design
1. Private & Semi-Private Living Spaces
- Individual bedrooms with soundproofing for privacy.
- Some rooms feature ensuite bathrooms, while others share communal facilities.
- Built-in storage solutions, such as under-bed compartments and wall-mounted shelves.
2. Shared Common Areas
- Large kitchens and dining spaces for communal cooking and meals.
- Cozy living rooms and lounges designed for social interaction.
- Coworking or study areas catering to remote workers and students.
3. Flexible & Space-Saving Design
- Modular furniture, such as foldable desks and Murphy beds, to maximize space.
- Multi-purpose rooms that can serve as guest rooms, yoga spaces, or additional study areas.
- Partitioned spaces to balance privacy with openness.
4. Smart & Sustainable Features
- Energy-efficient appliances and smart lighting to reduce costs.
- Keyless entry systems and app-based home management.
- Sustainable additions such as rainwater harvesting and solar panels.
5. Community-Oriented Amenities
- Outdoor spaces including gardens, patios, and rooftop terraces for social gatherings.
- Game rooms, gyms, or meditation areas to promote recreation and well-being.
- Shared laundry facilities and storage spaces for added convenience.
An example of a small three bedroom Co-Living House
Why Property Investors Favour Co-Living Houses
Co-living properties offer a competitive edge over traditional rentals, making them highly attractive to investors.
1. Higher Rental Yields & Cash Flow
- Multiple income streams: Renting out rooms individually generates higher overall rental income than leasing the property as a whole.
- Premium pricing: Tenants are willing to pay higher rents for fully furnished, amenity-rich spaces with flexible lease terms.
2. Strong Demand & Lower Vacancy Rates
- Appeals to young professionals, students, digital nomads, and even seniors seeking affordable, community-based living.
- Rising housing costs make co-living a desirable option for budget-conscious tenants.
- Built-in tenant replacement: If one tenant moves out, others remain, minimizing total vacancy losses.
3. Efficient Use of Space
- Maximizes rental potential by fitting more rentable rooms into a single property while maintaining functional shared spaces.
- Investors can repurpose underutilized spaces (e.g., basements, garages) into additional rentable units, increasing ROI.
4. Lower Operating Costs & Shared Expenses
- Shared utilities and amenities reduce per-unit operational costs.
- Longer tenant stays compared to short-term rentals, minimizing turnover and maintenance expenses.
- Some co-living operators offer property management services, reducing investor involvement.
5. Adaptability & Scalability
- Investors can retrofit existing properties or develop purpose-built co-living homes.
- Scalable investment model: Expanding into high-demand urban areas provides ongoing growth opportunities.
6. Tech-Driven & Future-Proof Investment
- Smart home features (e.g., keyless entry, automated billing, online booking) enhance property management efficiency.
- Co-living aligns with future urban housing trends, ensuring sustainable long-term investment potential.
How to source an investment property?
When sourcing an investment property, there are many opportunities that offer some excellent investment returns. There are many factors and fundamentals that should be considered to measure if the investment is best suited to you or not. Seeking advice from a property adviser (buyers’ agent) will be the best way to buy the right property for you.
If you’d like some assistance sourcing a brand new or off the plan property, please don’t hesitate contact us.
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While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
April 2024
