If you're a landlord in Singapore exploring innovative rental options, co-living could be an attractive prospect. This guide will delve into what co-living entails, its legality in Singapore, the prerequisites for landlords, the pros and cons of renting to co-living companies, and essential considerations.

What is Co-living?

Co-living is a contemporary housing concept where individuals share living spaces in a community setting. In this arrangement, tenants usually have private bedrooms and bathrooms but share common areas like kitchens and living rooms. Renowned co-living operators in Singapore, such as Hmlet and Coliwoo, often lease residential units from landlords and sublet individual rooms.

Is Co-living Legal in Singapore?

Yes, co-living is legal in Singapore. However, co-living companies must adhere to specific requirements, such as maintaining the maximum occupancy limit.

Requirements for Co-living in Singapore

If you're considering renting your property to a co-living company, ensure it meets the following criteria:

Approved for Residential Use

The property must be sanctioned for residential purposes.

Minimum Size Requirements

The property should meet the minimum size requirements set by the Urban Redevelopment 

Authority (URA), typically 35 sqm or 376.74 sqft.

Compliance with Building Bylaws:

The property must comply with the residential building or condominium bylaws.

Location Restrictions

The property must not be situated in a restricted zone.

Minimum Stay Duration:

Co-living arrangements usually have a minimum stay requirement, often at least 3 months.

Benefits and Drawbacks of Renting from a Co-Living Facility:

Higher Rental Yield

Co-living companies may pay a premium for properties meeting their specifications.

Steady Rental Income

Long-term contracts with co-living companies can provide a consistent rental income.

Reduced Vacancy Risk

Co-living companies are responsible for filling vacancies, reducing the risk of prolonged empty periods.

Disadvantages

Limited Control

Landlords have limited control over the selection of individual tenants.

Increased Wear and Tear

Communal living may result in higher wear and tear on the property.

Potential Disturbances

Noise and disturbances from communal living might be a concern.

Challenges in Property Viewings

Selling the property can be challenging due to difficulties in coordinating viewings, especially in multi-room units.

What to Take Note of?

If you decide to rent your property to a co-living company, consider the following:

Check the Company's Reputation

Assess the co-living company's track record and reputation before entering agreements.

Ensure Property Compliance

Confirm that your property aligns with Singapore's co-living requirements.

Define Contract Terms Clearly

Clearly outline terms such as rental rates, lease duration, and obligations in the contract.

Engage a Real Estate Agent

Collaborate with a real estate agent to craft a fair tenancy agreement that safeguards your interests.

Address Property Alterations

If the co-living company makes alterations, include a clause in the agreement ensuring reinstatement to the original layout.

If you're interested in exploring co-living opportunities for your property, feel free to contact a real estate agent with expertise in working with co-living companies. They can help you discover a suitable tenant for your rental home.