A Beginner’s Guide to Coliving
by Christine McDannell,
Co-Founder of Kndrd
Coliving: You’ve seen the term before.
You’ve heard all the excitement.
Maybe you’ve even considered breaking into the industry…
For those who are looking to find success in the market, either by starting your own coliving space from scratch, investing, or joining a team, here’s your beginner’s guide.
Coliving takes many forms across the world— that’s one of the reasons it’s so popular. To find out where your vision fits in, consider what type of home you are looking to create. Generally speaking, there are about seven broad groups that coliving properties fall into, which will dictate your next steps in terms of how the home will take shape. While the majority of coliving spaces at this time either offer individual units or rooms, it’s up to you to figure out whether you want shared rooms, pods, entire apartment formats, or something different. Get comfortable with what these definitions and distinctions mean, because they’ll be used frequently.
Know Your Competition
In order to stand out as a coliving operator, you want to know what you’re up against and which ones you aspire to emulate. Take a look at who’s doing well in the industry and use them as inspiration for your own space. The more you observe others in your domain, the less trial and error you have to do on your own. For example, assessing the most common operator needs can tell you where the best space is to enter the industry.
Determining Rates & Minimums
Situate your space competitively based on what else is out there and the type of environment you are looking to create. Ask yourself: Is this intended to be a short-term space with digital nomads cycling in and out? Or is it more permanent with longer-staying members who cultivate a very personal community? Whichever you choose, this will determine the essence of the space and type of pricing/duration model you need to implement. One valuable way to price your home advantageously is to take a look at the average stay. This will tell you what your target market is actually doing in the space and how to set your limits accordingly.
The coliving market is massive— that’s one of the reasons it’s so successful and high-demand. But that also means there’s more competition to be seen.
+2 $ Billion
Investments into coliving in the past year
Restrictions & Limitations
Depending on where you are in the world, different localities may place restrictions on real estate that can impact your coliving operation. This does not mean that you can’t still run a thriving and profitable coliving business if they are present, all you have to do is know these rules and tweak your operations to accommodate them. In fact, a considerable amount of coliving spaces fall under these— over 26% are bound by Maximum Occupancy standards, and more than 23% must have a minimum stay of 30 days. Don’t be daunted by these factors, they are completely workable but essential to know.
The coliving market is massive— that’s one of the reasons it’s so successful and high-demand. But that also means there’s more competition to be seen. Based on this study, the majority of coliving operations are using rudimentary approaches to generate leads and bookings. With this information, you can tap into the lesser-used areas such as social media and SEO to make outreach really count.
With all these basics, you should feel confident about where the coliving industry stands, how to situate your space within it, and how to get set up. This is the confusion-free guide to becoming a true pillar of the space— and now you’re on your way.