Co-Living Spaces: A Real Alternative To Expensive Apartment

The check of a monthly rent has turned into a quiet desperation of millions of renters in large cities. Studio fees that are two and a half thousand dollars and one-bedrooms that require three times the salary in form of rent and security deposit that sweep savings accounts- the arithmetic does not add up to most young professionals, digital nomad and even those in middle careers. Enter co-living: a new version of the boarding houses of the early 20th century, rebranded to the gig economy.

Co-living spaces are offering fully furnished rooms, common areas, inclusive bills, and an inbuilt community. But is it a good financial decision, or is it a marketing gimmick in minimalist furniture wrap? This paper explores co-living in all its perspectives cost, privacy, flexibility, social dynamics, and pitfalls. At the end, you will understand whether it can be considered a true solution to sell a traditional apartment and live in a co-living or it is merely a new taste of expensive.

 What is Co-Living and How Do you Differentiate Co-Living and a Roommate Situation?

Co-living may not seem like a very realistic word on the face of it. However, the differences are beyond branding. In a typical situation of a roommate, you would encounter two or three other individuals and you sign a mutual lease, share the utility bills and you quarrel over who left the dishes in the sink. Co-living on the other hand is normally managed by a management company which owns or leases an entire building. You are signing a separate lease on your own bedroom room, which may have its own lock, and may include an en-suite bathroom, whereas the kitchen, living room, laundry, and outdoor facilities are shared.

The company provides all cleanup of shared spaces, furniture and appliances, and utilities, Wi-Fi and even weekly events in a single monthly rate. You do not have to go out chasing a roommate to contribute his part of the electric bill since you only pay a flat fee to the operator.

The power dynamics are altered with the help of the operational model. In co-living, you do not have to pay the money when your neighbor in the adjacent pod does not pay rent. Your lease is in silo. It is a great plus to traditional shared housing where joint and several means that you can be thrown out because one of your roommates has trouble with money. Also, co-living places usually have flexible lease options, three months, six months or month-to-month, which is virtually unattainable in an ordinary apartment building.

That flexibility is gold to someone who travels often due to their occupation or just wishes to shop around a neighborhood to make a decision. The trade-off however is cost. All these services are premium priced by co-living operators. A private room in a co-living building can cost you an estimated 1,800, and you can get an apartment in the same neighborhood with three roommates at 1,200. You are paying convenience, community and cancellation rights.

The Financial Reality: Co-Living vs. Traditional Apartment

I will discuss in dollars and the marketing brochures will always make co-living sound like a bargain. The reality is less obvious. Comparing a co-living private room and a studio apartment in the same area, co-living is nearly always less expensive- by 30 to 50 per cent. A studio in San Francisco could cost an average of 2800, and co-living in the bedroom of a 4-bedroom apartment could cost 1600.

That sounds like a huge discount. But then put the same co-living room next to a traditional shared apartment where you get your own roommates and divide a three-bedroom apartment right with a landlord. In that scenario, your share might be $1,200 to $1,400. The co-living is now costly by a margin of 200 to 400 more monthly. That premium purchases you furniture, utilities, cleaning services, and the option to give thirty days’ notice and leave. The question of whether that premium is worth the money is solely based on your lifestyle and financial cushion.

You should also consider the hidden costs which are removed by co-living. A standard apartment needs first month rent, last month rent, and a security deposit of one month- usually six thousand dollars in advance to rent out a two-thousand dollar apartment. Co-living is often less demanding in terms of a deposit, often only $500, and no last months’ rent. You also are not purchasing furniture, kitchen supplies and a vacuum cleaner.

That initial saving is immense to a new graduate or a person who has relocated to a new city with nothing than just suitcases. Conversely, co-living operators may impose application fees, cleaning fees upon moving out, and community fees that may increase the monthly payments by 50-100 dollars. Always look at the small print. Certain co-living agreements also have compulsory meal plans or events.

Privacy, Personal Space and Myth of Your Own Room

The prospect of having a separate bedroom is very nice until you actually notice the size of that room. A number of co-living operators have mastered micro-bedroom. You could have a room that has space to accommodate a twin bed, a small desk, and a closet--there being just enough floor space to do a yoga stretch.

The walls tend to be thin, and converted buildings that have not been soundproofed. Your personal area is literally only a place to sleep and work on a laptop. All other activities such as cooking, eating, watching TV, entertaining guests, making phone calls are done in common places. This layout can be claustrophobic to an introvert who prefers to work alone or one who has odd hours to work. After ten PM, you cannot make a personal phone call and wake up your four housemates. You cannot make a fancy meal when some other people require the stove. Privacy is not about four walls, but control over the world around you.

Moreover, the bedroom that belongs to the family does not necessarily have a personal bathroom. In most co-living arrangements, you share a bathroom with one or two other individuals. That is, arranging morning routine, taming the hair of another person in the shower, and never forgetting to brush your teeth in the bathroom. When you buy an en-suite room, the price increases dramatically- at times it is almost the same as a small studio flat.

The problem of guests is also present. In most co-living agreements, you are limited to a set number of nights on an overnight basis per month, or you are expected to notify the management. There are those who prohibit guests. This is a deal breaker to any person in a romantic relationship or to family that visit out of town. Prior to signing, request the precise square feet of the bedroom, the thickness of the interior walls (or, more preferably, visit the place on a busy evening and listen to the noise), and the exact guest policy.

Community and Loneliness: The Two-Sided Sword of Built-In Social Life

Instant community is one of the most significant selling propositions of co-living. It is violently lonely to relocate to a new city with no acquaintances. The co-living areas have weekly dinner, game nights, rooftop yoga, and coworking times. In the case of extroverts or transitional people, this may literally be life-changing.

You get to know fellow renters also seeking friends, business associates or exercise partners. In some co-living buildings, Slack channels can be used to borrow a blender or to find a tennis partner or even to ask someone to recommend you a grocery store. This social infrastructure is there. In an ordinary apartment building you could spend years without knowing the name of your neighbor. In co-living, you are literally compelled to socialize and this is what most individuals require to overcome loneliness.

Community, however, can be exhausting also when forced. And, what is even more troubling, you are home after a 12-hour workday and all you want is to relax, but you enter the house to find that there is a family dinner party going on in the kitchen you have to share. Consider the need to watch a sad movie alone, yet there are four people playing Mario Kart in the living room.

Co-living appeals to a specific group of people, who are typically young, single, social and outgoing. In case you are not that type, you would feel like being a stranger in your home. Also, it is always changing and you end up making friends with people who move within three months. That emotional whiplash takes its toll on you. One month you are celebrating a birthday of a housemate; the next month he/she is gone and someone else comes and leaves dishes in the sink.

Flexibility/Stability: Lease Terms and the Hidden Cost of Moving

The contemporary labor market is volatile. Remote workers, freelancers and contractors are usually required to move within a period of six weeks. This is done best in co-living spaces. The majority have leases of three, six, or twelve months, and most permit month-to-month renewal following the initial term. Others even allow you to change to another co-living building in a different city without any breach of lease.

To a digital nomad who spends three months in Austin, four months in Denver, two months in Miami, co-living would be a dream. You do not sign a one-year contract, never purchase furniture, and never establish utility services. You just reserve a room, arrive with a suitcase and depart once you are ready. Such flexibility cannot be achieved in the traditional rental market where breaching a lease can cost two months of rent and loss of your deposit.

Flexibility, however, has its cost, and not necessarily in money. When you are living on short-term leases, you never really settle. You are not able to paint a wall, build shelves, or get a pet. You are not able to forge networks with local business or feel that you are a part and parcel of a neighborhood. Your address keeps changing, and this is not just in drivers license and voter registration, but also in package delivery.

Furthermore, co-living operators are allowed to increase your rent in a thirty days’ notice on a month to month basis. Under classic lease, you can have a twelve-month locked rent. In co-living, a 10% growth may occur after every six months. And once the operator chooses to either sell the building or to revert it to the traditional apartments, you enjoy virtually no tenant protections. Flexibility in the short term is a give and take affair: you can get out, but they can also get you out

Red Flags, Fine Print and How to Avoid a Co-Living Nightmare

Not every co-living space is equal. The industry has also been receiving ethical operators and speculators with opportunistic interests who overcharge too many people with too little space. You should visit the property twice, once in the daytime and once on a Friday night before you sign anything. Find cleanliness of shared areas, working appliances, and sufficient storage of food of all people. Inquire with the existing residents (not the tour guide) about the way management addresses requests of maintenance and conflicts between roommates. Another frequent rebuke in co-living is that the management offers to clean the apartment every week but in actuality, a cleaner will be sent once a month.

The next red flag is imprecise words in the lease regarding additional service fees. Request a full list of all the fees that you might have to pay: application fee, cleaning fee, key replacement fee, late payment fee, guest fee, move-out fee, and community activity fee. There are operators who require a turnover fee each time a new roommate joins your unit- even though you had nothing to do with the addition of the new roommate.

Inspect the dispute resolution process also. In a classic case of roommates, in case one is unbearable to stay with, you can request the landlord to evict he/she or you can change. When you are living co-living, the management usually is allowed to relocate you to another unit or building but rarely will they kick a paying tenant because they are annoying them. You might be left with a roommate who plays loud music till 2 am, who steals your food or who constantly invites strangers home.

The lease may have a clause on community standards which, though it may sound nice, is hardly ever implemented. The only actual cure is to end your lease--that can be penalized a month or two of rent. Prior to signing, call the local tenant rights hotline and inquire whether or not there are any complaints against the co-living operator. Browse the Google Maps reviews with the lowest rating. Search on patterns regarding mould, pest, broken appliances and unresponsive management. Co-living may be an amazing alternative to costly apartments, though you need to select a good operator and enter with your eyes open with regards to trade-offs.

Conclusion

Then, can co-living be the alternative to the costly apartments? Yes, but not all persons under all circumstances in all ages, is the answer. Provided that you are a young professional who has just changed cities, digital nomad who switches every few months, or are socially oriented, co-living is a more flexible, all-inclusive, community-oriented solution that cannot be compared to traditional renting. You get to avoid the inconvenience of buying furniture, hunted down roommates, and a suffocating year-long contract in exchange of a monthly check and pre-made friends. It is not a one-sided financial comparison as the marketers make out, you will pay a premium over a DIY shared apartment, but that premium is convenience and peace of mind.

Nevertheless, co-living cannot be a universal solution to the housing affordability crisis. To couples, families, introverts or anybody who requires a true privacy and consistency, co-living may seem as an adult-dormitory at a high cost. The cramped bedrooms, frail walls, communal bathrooms and volatile community grow weary in a year. Such unnoticeable expenses and the lack of protective measures towards tenants can transform a good bargain into a nightmare.

The best thing is to consider co-living as a medium-term solution. Spend six months using it as you explore a new city, create your own social network, and find an apartment with roommates of your own choice. Or as a working tool in case your occupation requires being on the move. However, do not enter into a long-term co-living contract under the notion that it will be cheaper than a well-negotiated shared apartment of the traditional kind.

Do the math, read the contract and most importantly, know yourself. The most appropriate housing option is not the one that is fashionable, but that which suits your real life. Co-living is a wonderful idea with some and a failure with others. The information is there now and it is up to you to decide which camp to fall into.

Also Read: Alternative Housing Options: Exploring Non-Traditional Living Spaces