Co-Living properties are a new type of multiple income property available to investors. They are purpose-built homes designed to allow separate tenancies within one property. The properties are designed with additional features that enable individual tenants more privacy and often include larger rooms with ensuites, lockable pantries, and storage. Each of the rooms in a co-living home is semi-self-contained and offers a comparable rental opportunity to a micro-apartment.
Co-living homes are generally managed by specialist property managers with experience in this leasing arrangement.
Co-living homes don’t have the same Council approval requirements that a Rooming House or Boarding House has and thus can be built on a standard residential block of land. Co-living instead works on the premise that an investor is allowed to rent out to up to three different parties without the need for any additional local Council approval. In some locations, the local Council rules may allow for additional tenancies within their own specialised Co-living policies.
There may be a need for Covenant approval from the developer in new estates. However, other than this, a Co-living home is the same as a standard residential home; only it has additional bathrooms and storage areas.
From the street, a Co-living home will appear like a normal home. The plans are purpose designed to allow tenants to reside in their own designated area, and provides for a modern form of affordable living. Each floor plan offers the following:
The above floor plans shows a standard Co-living floor plan that can be used to fit on a small residential block of land.
We have discovered a huge demand from young professional tenants for this type of self-contained product. This has only increased in recent times, with the increasing interstate migration putting pressure on an already stressed rental market. It’s predicted that as the international borders re-open, this will only exacerbate the situation.
For our product, we target areas where there is good demand from tenants and not and not of readily available comparative studio or 1-bedroom rentals.There are a considerable number of singles and couples who require one-bedroom and studio accommodation. According to the Australian Bureau of Statistics (ABS), 23.5% of the total Queensland households are single-person households, and 35.1% are two-person households.
That means that 58.6% of the total households in Queensland are two persons or less. Yet, according to the ABS number of bedrooms per dwelling data, only 5.2% of dwellings in QLD are one-bedroom, and 15.7% are two bedrooms. Only 20.9% of homes have two bedrooms or less.
So from the ABS data, it can be surmised that there is a massive disconnect between the number of people in a household and the number of bedrooms in available accommodation, with 58.6 % of households in QLD having two persons or less and close to 70% of the available accommodation being 3 – 5 bedrooms plus. Importantly for our studio accommodation, 23.5% of the population in QLD are single-person households, yet only 5.2% of the dwellings are one-bedroom or studio.
This shows that co-living properties serve as an important and strategic class of investment property.
The team at New Property Australia is readily available to discuss your property investment goals and what the next steps in your property investment journey should be.
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