A proven approach to generating consistent cash flow through room-by-room rentals
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.
Philadelphia's growing economy attracts working professionals who need affordable, convenient housing close to employment centers.
Traditional apartments are often unaffordable for many workers. Co-living provides quality housing at a fraction of the cost.
Tenants value the convenience of move-in ready spaces with all utilities included, reducing their financial burden and decision complexity.
Co-living appeals to professionals who may relocate frequently or prefer not to commit to long-term leases on full apartments.
Why co-living delivers superior returns
Renting by the room typically generates 30-50% more monthly income per property compared to traditional single-tenant rentals.
Multiple tenants per property reduce vacancy risk. If one room is empty, other rooms continue generating income.
Strong, consistent demand from working professionals creates stable occupancy and predictable cash flow.
Each bedroom is rented individually with its own lease. Tenants have private bedrooms and shared access to common areas.
All utilities (electric, water, gas, internet) are included in the rent, simplifying tenant budgeting and reducing friction.
Properties are move-in ready with furniture, appliances, and all necessary amenities. Tenants can relocate with minimal belongings.
Hands-on management ensures quality tenant relations, maintenance, and consistent operations across the portfolio.
| 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) |
Schedule a private call to learn more about how co-living investments work and explore opportunities in the Philadelphia market.
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