What is co-living and why should I invest in co-living properties?

Coliving is a modern housing concept where multiple tenants share common spaces while having private bedrooms. It's attractive for investors because it offers 15-30% higher rental income per square foot, reduced vacancy risk with multiple tenants, high demand from millennials and Gen Z, and cap rates of 8-12% in major markets.

What are the average cap rates for co-living properties?

Co-living properties achieve cap rates of 8-12% nationwide, significantly higher than traditional rentals at 5-7%. Austin averages 9.2%, Houston 8.7%, Los Angeles 7.8%, Denver 8.4%, and Miami 7.6% cap rates.

How much money do I need to invest in co-living properties?

Total initial investment typically ranges $200K-$300K including: down payment (20-25%), closing costs (2-3%), renovation budget ($10K-$50K), and reserve funds for 3-6 months. For a $750,000 property, expect $200K-$300K total initial investment.

What is the ROI on co-living property investments?

Coliving investments typically achieve 15-25% total ROI including appreciation, with 12-18% cash-on-cash returns and $1,500-$4,000 monthly cash flow. This is 30-50% higher returns than traditional rentals, with break-even in 5-8 years.

How do I finance a co-living property purchase?

Financing options include conventional investment loans (20-25% down), portfolio lenders with flexible terms, specialized co-living lenders, and DSCR loans based on property income. Requirements typically include 680+ credit score and 1.25x debt service coverage ratio.

What markets offer the best co-living investment opportunities?

Top markets include Austin TX (9.2% cap), Houston TX (8.7% cap), Denver CO (8.4% cap), and Los Angeles CA (7.8% cap). Best markets combine strong job growth, high housing costs, favorable landlord laws, and young demographics.

What are the typical cap rates for Austin co-living properties?

Austin co-living properties typically offer cap rates between 8-12%, with our featured properties averaging 9.6% cap rates due to high rental demand from students and young professionals.

Why is Austin a good market for co-living investments?

Austin offers exceptional co-living investment opportunities due to rapid population growth, a thriving tech industry, major universities like UT, and strong rental demand from millennials and Gen Z.

What is the minimum investment for Austin co-living properties?

Austin co-living investment properties typically start around $625,000, with financing options available. Most investors see positive cash flow from day one.

Tenant Screening Best Practices for Shared Housing

Essential Screening Criteria

Our proven screening process ensures you find reliable, responsible tenants who contribute to a positive shared living environment

Financial Verification

Income verification (3x rent minimum)
Credit score check (650+ preferred)
Employment verification
Bank statements review

Background Check

Criminal history review
Eviction history check
Sex offender registry
Identity verification

Reference Verification

Previous landlord references
Personal references
Character assessment
Rental history verification

Our 5-Step Screening Process

Follow our systematic approach to identify the best tenants for your shared housing properties

1

Application Review

Initial application screening and basic qualification check

2

Credit & Background

Comprehensive credit and criminal background verification

3

Reference Check

Contact previous landlords and personal references

4

Interview

Personal interview to assess compatibility with shared living

5

Final Decision

Make informed decision based on comprehensive evaluation

Red Flags to Watch For

Inconsistent Information

Discrepancies in employment, income, or personal details across application materials

Poor Rental History

Multiple evictions, late payments, or property damage in previous rentals

Insufficient Income

Income less than 3x the monthly rent or unstable employment history

Unwillingness to Provide Information

Reluctance to provide references, documentation, or answer screening questions

Online application form for modish registration on the internet website

Legal Compliance & Fair Housing

Ensure your screening process complies with all federal, state, and local fair housing laws

Fair Housing Act

Prohibits discrimination based on race, color, religion, sex, national origin, disability, or familial status

FCRA Compliance

Follow Fair Credit Reporting Act guidelines for background and credit checks

Local Laws

Stay updated on local ordinances that may impose additional screening restrictions

Privacy Protection

Safeguard applicant information and follow data protection requirements

Ready to Implement Professional Tenant Screening?

Protect your investment and create better shared living experiences with our proven screening process