Practical guide · General Questions · Basic level · 5 min read ·
How to invest in coliving?
Coliving is housing with private rooms and shared spaces, services included and stays of weeks or months. You can take part in it without buying a building: you put a small amount into a project that runs it and receive a share of its profits, which depend on occupancy, rates and operating costs.
In 30 seconds
- Coliving rents rooms with services included and shared spaces, by the week or month.
- Its income is usually steadier than nightly rental, but it takes more management.
- You can take part with a small amount in a project that runs it, without buying or managing a property.
Before you start
Coliving sits between a traditional lease and a hotel: it charges per room, includes services and depends on the community working. If you're just starting, read how to start in real estate with little money first.
- Understand who it serves: people moving to a city for work or study, digital nomads and young professionals who'd rather not furnish a place or sign long leases.
- Keep in mind it's an operating business: cleaning, utilities, internet, community and maintenance cost money every month.
- Use money you won't need soon: a participation has low liquidity.
Step by step
- 1
Understand the income model
Instead of leasing a whole flat to one household, coliving rents each room separately, with services included. Total income is the sum of the booked rooms times their rate. Profit is what remains after the costs of running the house.
- 2
Tell it apart from short-term rental
Short-term rental sells nights to tourists; coliving sells weeks or months to residents. So coliving occupancy usually moves less, but the equivalent nightly rate is lower. Compare the two in the guide to Airbnb-style projects.
- 3
Look for a project that runs it
At Circular Urban, Circular Houses in Medellín has a coliving unit inside a building that also runs short-term rental apartments, a commercial space and workspaces. That mix spreads income across businesses that complement each other.
- 4
Read occupancy and profit, not just the rate
Monthly occupancy tells you how many rooms were filled. Monthly profit tells you what was left after utilities, cleaning, management and other costs. That second number is the one that gets shared.
- 5
Check who runs it and how the community is looked after
Coliving lives on the experience: clear rules, good coexistence and well-kept spaces. Ask who operates it, how residents are chosen and how problems get solved. A good operator shows in stays that get renewed.
- 6
Start small and follow the reports
Participate with a small amount and read the project's reports for several months. That way you see how occupancy behaves in high and low season before deciding whether to add more.
An example
As arithmetic, unrelated to any project: a coliving house has 10 rooms. In a month 8 are booked, each at 30 units with services included.
| Booked rooms | 8 of 10 (80%) |
|---|---|
| Income for the month | 240 |
| Utilities, internet and cleaning | 60 |
| Management, community and maintenance | 50 |
| Profit before tax | 130 |
Included services are part of what residents pay, but also a fixed cost for the project. An empty room barely reduces those costs: that's why occupancy weighs so much on the result.
Questions you'll have
What exactly is coliving?
It's a way of living where each person has a private room, often with an en-suite bathroom, and shares the kitchen, living room, laundry or work areas. You pay one rate that includes utilities, internet and cleaning of shared areas, and stays run from a few weeks to several months.
Can I invest in coliving with little money?
Yes. You don't need to buy a house or a building: you take part in the company that owns a project running it. With Circular Urban you can do it from about 190,000 pesos (around 50 dollars), depending on the project, and receive a share of the profits the operation produces.
Is it better than Airbnb-style short-term rental?
It's neither better nor worse: it's different. Coliving usually has steadier income because stays are long, but lower equivalent nightly rates and more community management. Short-term rental can bill more per night, with more variation between months. A project that combines both spreads those differences.
Who looks after the residents?
The project's operator. It chooses residents, collects payments, maintains the spaces, organises cleaning and looks after coexistence. You take part as a partner: you read the reports and understand the results, without handling the day to day.
What are the risks of coliving?
That occupancy drops, that utility costs rise, that coexistence breaks down and residents leave, or that more competition appears nearby. A participation also has low liquidity. That's why it's worth reading each project's risk disclosure before participating.
How is coliving similar to a multifamily building?
Both are rental housing run by a single owner. The difference is the unit being rented: a multifamily building leases whole flats on long contracts; coliving rents rooms with services included and shorter stays.
Common mistakes
- Myth
Coliving is the same as student housing.
- In reality
It shares the idea of rooms and common areas, but it's designed for working or studying adults, with services, flexible stays and a community looked after by the operator.
- Myth
If the room rate is high, the project makes a lot.
- In reality
The rate includes services the project pays for every month. What counts is profit after those costs, and that depends mostly on occupancy.
- Myth
To take part in coliving you have to buy a big house.
- In reality
Buying and running one takes a lot of capital and time. Participating in a project that already runs it, such as Circular Houses, lets you start with little.
Your first step
See how a real coliving works
Open the Circular Houses page, see how coliving, short-term rental and the commercial space fit together, and read its documents at your own pace. Before deciding, check the guide to evaluate a project.
See Circular HousesKeep learning
This content is educational. Every participation carries risks inherent to the project, including the possibility of partial or total loss, and results are subject to each project's actual performance.
