Sell for More News is a weekly blog series with interesting information from the world of commercial real estate.
First, let’s refresh our memory on what “co-living” is. Co-living typically involves furnished apartments with communal kitchens and common spaces – and an emphasis on amenities and community.
In short, co-living is a shared urban residence. The advantages of co-living are affordability, flexibility and ease of use. (For more background information on co-living click here, here or here for previous blog articles)
In the next few years, the number of co-living units nationwide is expected to triple.
One of the wellsprings of the co-living movement has been, not surprisingly, San Francisco. The city by the bay is among the most difficult to afford, with just one new home being built for every 4.5 jobs created. Supply and demand being what they are…rents go on rising.
Enter…Bungalow who built a platform that essentially re-allocates single-family homes as multi-unit rentals.
Founded more than 2 years ago in San Francisco, Bungalow taps the unrealized potential of private homes, reallocating their space to allow for multi-unit rental housing.
It’s a radical departure from other co-living models. This unique business model has allowed it to deliver more co-living units in less time with less capital.
For cash-strapped would-be renters, leasing a unit with Bungalow means spending 30%-40% less than they would for a studio apartment in the same city. The company also provides the conveniences of roommate matching, furnished common areas and utilities are included.
Those renting with Bungalow can move between homes without breaking their leases. The company plans events each month for its residents, enabling their clientele to meet new friends, an important plus when in a new city.
Rents range from $1,200 to $2,000 a month with utilities and housecleaning included in rent.
Bungalow is now in 10 markets across the country managing more than 2,500 co-living units across 500 properties.
In summary, I’ve said it before and I’ll say it again…Co-living is a real trend. Especially for single renters looking for an affordable alternative to a studio or one bedroom apartment. Co-living will be in your market very soon.
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About Beau Beach, CCIM
Beau is a tenacious Commercial Real Estate Broker, author and adoring father of four. His clients appreciate his no-nonsense demeanor and his legendary work ethic.
Beau leads Beachwood which is a commercial real estate broker for sellers in the Nashville, Milwaukee, South Florida and Chicago markets.
He’s the author of the books The 3 Reasons: Why Most Commercial Properties Don’t Sell and True Wealth: What Every Seller Should Know About 1031 Exchanges.
Beau can be reached at 800-721-3287, click to schedule a call or Beau@BeachwoodSells.com