Introduction
A couple of months ago, my brother-in-law (Steven) and I were both freelancers facing a cost-of-living crisis. Rent in our area is extremely high, and the dedicated desks at our co-working space cost us $300/mo.
Recently, we turned our problem into a side project by convincing our ex-landlord to convert his home into a co-living/co-working space. We did this by installing unique smart locks on every room door and replacing most furniture for work desks. Smart entry systems were installed on the front and back entrances, and whiteboards were placed throughout the main living areas. We even put in a ping-pong table in the garage. In all, we managed to comfortably fit 12 two-person desks throughout the 4,500 sq.ft., 6BD, 5BA home.
Results
Within two weeks of listing the space on Craigslist, each desk space was rented out for $199/mo and each room for $999/mo. The homeowner included utilities, internet, and weekly house cleaning in the rent, which, not surprisingly, made it sell like hotcakes on a Sunday morning. Despite all of this costing ~$7,000/mo, the house is currently generating ~$10,700 in MRR.
For added clarification, all of the billing is handled through an online payment portal that we set up for this project. Through it, we charge an 8% fee on the monthly profit (~$300/mo).
Conclusion
We are lucky to have an open-minded landlord as a friend; else, I don't think we would have been able to pull this off. Despite our firm conviction, we weren't 100% sure if people would be comfortable renting rooms in a house that also serves as a 24/7 co-working space for other people.
Our next step is to try to replicate our experiment with a few more homes in our area, before building more software around it.
Details
- Desks: Ikea Bekant ($149); Chairs: Office Factor Executive ($199)
- Room Locks: August ($199); Entrance Locks: August SmartLock Pro ($279)
- Whiteboards: Quartet 3x4 ($199); Pin-Pong Table: JOOLA ($479)
All in all, there were ~$10k in upfront costs less ~$4k recouped from sold furniture.
Anyways, I hope you found this interesting and I'd appreciate any feedback that you might have given that I am new to the whole real estate thing :)
