Anyone doin co-living in DFW?

Question

Hi everyone!

I have a single-family rental income property that I’m in the process of converting into a co-living space.

I’d love to hear from anyone who’s done this or has experience with co-living rentals. A few questions and concerns I have:

-What kind of rules should I be enforcing?-What types of agreements do I need in place with tenants?-Does anyone have a sample of a house rules template they’d be willing to share?

It would be super helpful to see what others are doing to make sure I’m covering all the bases.

Also, what are some of the biggest challenges you’ve run into with co-living spaces—either as a landlord or a tenant? I’d love to get ahead of any common issues.

Thanks in advance!

Jason Zundel · Answer

Eunice:  Just wanted to add that you need to be careful on the agreement side and make sure your tenants have signed agreements (no verbal for real estate ever!) and the more detail the better.  In addition, make sure you are taking account the following (non-exhaustive and you should verify your state rules and requirements) list when prepping your agreements:

• Fair Housing Laws: Landlord (you!) must adhere to fair housing laws and avoid discrimination when selecting tenants.
• Occupancy Limits: Ensure that the co-living space complies with any local occupancy limits. This one varies WIDELY depending on your state and county.
• Subleasing: If residents plan to sublet, the landlord's approval is typically required.

• Rent and Payment Terms: This one seems obvious, but you would be surprised, but, clearly define the amount of rent, payment due dates, and accepted payment methods.
• Security Deposit: Include information about the security deposit, its purpose, and the process for its return.
• Shared Responsibilities: Outline shared responsibilities, such as cleaning common areas, maintaining the property, and managing shared expenses. Clearly an attorney opinion, but you can never be too specific!
• Privacy: Address privacy concerns among residents, such as noise levels, guest policies, and personal space boundaries. Bright line rules are harder here, but just having something listed that could count as a breach can go a long way.
• Dispute Resolution: This is an oft forgotten, but vital inclusion - a specific process for resolving disputes among residents, such as a mediation.

Stephanie Walker · Answer

Hi! I'm a Realtor and PM in the Charlotte NC market. We've started doing co-living at one of our personal investment properties to try it out. To be honest, the situation kind of fell into our lap - it was not necessarily all by choice.

On top of being a Realtor and PM, we own a couple other businesses. One of those businesses needed employee housing in our local market. (They are subcontractors - not directly our employees). Subsequently, our friend/tenant had just broken up with his GF and now had the space and needed the help with the rent to stay in our property. He is our designated "house manager".

House rules include no smoking, labeling products in pantry and fridge, assigned parking, "quiet hours", assigned laundry days, biweekly room checks (to ensure a reasonable amount of cleanliness), etc. We have them all sign and it's the house manager's job to enforce on the day to day. Our rental agreements allow for a 7 day notice to vacate and expedited eviction.

Biggest challenges are honestly dealing with so many different personalities in one household. We hadn't had any issues and it helps that they all work together and have a level of mutual respect between sharing bosses and landlords.