The Co-Living Investment Model

A proven approach to generating consistent cash flow through room-by-room rentals

Co-living property interior

What is Co-Living?

Co-living is a rental model where individual rooms within a property are rented separately, rather than renting the entire unit to a single tenant. Each tenant has their own private bedroom, while sharing common areas like kitchens, living rooms, and bathrooms.

This model has gained significant traction in urban markets like Philadelphia, where working professionals seek affordable, furnished housing with utilities included. For investors, co-living offers several advantages over traditional rental models.

Why Co-Living Works in Philadelphia

Strong Workforce Housing Demand

Philadelphia's growing economy attracts working professionals who need affordable, convenient housing close to employment centers.

Affordability Gap

Traditional apartments are often unaffordable for many workers. Co-living provides quality housing at a fraction of the cost.

Furnished & Utilities Included

Tenants value the convenience of move-in ready spaces with all utilities included, reducing their financial burden and decision complexity.

Flexible Living Arrangements

Co-living appeals to professionals who may relocate frequently or prefer not to commit to long-term leases on full apartments.

Investor Benefits

Why co-living delivers superior returns

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Higher Cash Flow

Renting by the room typically generates 30-50% more monthly income per property compared to traditional single-tenant rentals.

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Diversified Income

Multiple tenants per property reduce vacancy risk. If one room is empty, other rooms continue generating income.

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Workforce Housing Demand

Strong, consistent demand from working professionals creates stable occupancy and predictable cash flow.

How Properties Are Structured

Co-living floor plan
Co-living shared space

Rent-by-the-Room

Each bedroom is rented individually with its own lease. Tenants have private bedrooms and shared access to common areas.

Utilities Included

All utilities (electric, water, gas, internet) are included in the rent, simplifying tenant budgeting and reducing friction.

Fully Furnished

Properties are move-in ready with furniture, appliances, and all necessary amenities. Tenants can relocate with minimal belongings.

Professional Management

Hands-on management ensures quality tenant relations, maintenance, and consistent operations across the portfolio.

Traditional Rentals vs. Co-Living

Factor Traditional Rental Co-Living Model
Monthly Income Single rent payment per unit Multiple rent payments per property
Vacancy Risk 100% income loss if tenant leaves Partial income loss (only one room)
Cash Flow per Sq Ft Standard market rates 30-50% higher potential
Tenant Market Families, long-term renters Working professionals, flexible renters
Furnishing Tenant responsibility Included (move-in ready)
Management Complexity Lower (fewer tenants) Higher (more tenants, professional management required)

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