A profitable business For homeowners, the benefits come from building their brand and diversifying their real estate portfolio through a popular and lucrative housing agreement idea that is increasingly desirable and even necessary in some of the largest cities in this country. Everyone involved in the paradigm of living together can benefit. Renters are free from the chains of commitment because little investment is needed in furniture or accessories; everything is supplied as part of the housing arrangement. There are also far fewer expectations compared to the expectations that typical long-term rental tenants would face if they lived alone in an apartment or condo.
With the recent administrations, bankruptcies and mergers and acquisitions of the past year, the coliving market is still in a consolidation phase and the best practices on how to operate a coliving brand on a large scale depend on a series of factors, typologies and externalities. This gray area makes it difficult for some developers and shared housing operators to obtain planning approval, and offers a great opportunity for more personalized living policies to emerge. Business leaders in the real estate sector have found the perfect solution to these age-old problems: Coliving. As the market for shared living spaces is still in its infancy, the workflow followed by shared housing operators is mostly designed organically, which does not effectively cover the change of plans or, for for example, unforeseen circumstances.
To learn more about these ownership models and dive into a SWOT analysis of more than 25 cohousing operators, you can download Coliving Insights No. Recent market activity shows that shared housing operators are still trying to understand what are the best (or several best) ways to manage their living together business. A study conducted in the U.S. The U.S.
has found that, on average, coliving offers tenants a 30% discount on gross housing costs compared to traditional housing options in the same area, the main reason why urban living rooms are in such high demand and operators tend to have occupancy rates above 95%. For cohousing companies with a high volume of assets that own buildings to live in, this increase in the NOI is the most crucial part of the model Business. Selina's shift to coworking is the same as Dojo's, but in the opposite direction and perhaps this is the solution for those coliving operators who, for the most part, according to the Coliving Insights report, have difficulty billing for the extras. To better understand how to create and optimize your Coliving business model, you can consult the resources included in the Coliving Research page.
In fact, strong operations management practices can boost the coliving business and help the coliving management team achieve their scalability goals quickly and effectively. Residents vote with their pockets and, when a community of cohabitation offers a timeless and unforgettable experience, word of mouth attracts more and more residents from one coliving brand to another. The three main selling points of living together are community, convenience, and cost, but the biggest advantage of living together is undoubtedly the community. For example, Dojo Bali (owner of Hubud for about two years) has already created a living space in Canggu.
