A recent media report about the emergence of co-living units at a Hillview condominium has drawn attention to this accommodation practice. Even as the number of co-living operators in Singapore grows, the more well-known ones such as Coliwoo prefer to acquire entire properties or shophouse spaces and convert them into co-living units. Only a small handful of operators, such as The Assembly Place and Cove, offer landlords the option of bringing their property onto the operator’s portfolio. But that begs the question of whether renting out your condominium unit to a co-living operator is legal.
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Co-Living Is Allowed In Singapore
The Urban Redevelopment Authority (URA) has put out guidelines for co-living, recognising that it is a “marketing term” and acknowledges that there are “varying models of co-living operations”. The guidelines therefore only pertain to “minimum stays, unit sizes, layouts and technical requirements”. This is to allow co-living operators “some flexibility”, while still safeguarding “dis-amenity concerns and technical requirements”.
For residential units such as condominiums, therefore, URA prescribes the following: a minimum 3-month stay, a maximum of 6 unrelated persons within a single unit, a minimum size of 35 square metres per unit, and compliance with the by-laws of the residential building or condominium.
Note the contrast between these co-living guidelines and HDB’s rental guidelines, which require at least a 6-month stay. This is because HDB flats are intended for homeowners to live in, and short-term stays would disrupt the living environment and pose security concerns for residents. This is also where co-living differs from the Airbnb model.
How Do Co-Living Operators In Singapore Work With Condominium Landlords
Different operators each have their own system, but the basic premise is that landlords apply to a co-living operator to have their property reviewed. The operator then assesses the unit, which may include space optimisation, and recommendations to upgrade the interior.
They will then onboard the unit to their platform, which can include a professional property photoshoot. Once confirmed, the co-living operator will use a structured process to manage tenant coordination, documentation, and day-to-day operations.
Is it Better To Rent Out To A Co-Living Operator Or Do It Yourself
Both options have clear pros and cons. Working with a co-living operator ideally means prompt rent payments and lets you leave property management to the operator. You generally have a consistent co-living operator representative as a point of contact, and you don’t have to worry about the quality of the residents they bring in.
Most co-living operators will handle house maintenance and cleaning and manage tenant contracts and recontracts. Since it is also in their interest to reduce vacancy rates, they’ll ensure the rooms are well marketed.
The downside, of course, is that the rooms are often leased at a premium. For example, a master bedroom with an ensuite bathroom is going for $1,400 a month at one condominium unit. In the same condominium, a similar master bedroom in another unit rents for $2,650 per month on a co-living platform, almost double.
A 2-bedroom, 2-bathroom unit at this same condominium currently rents for $4,600 per month. The price history suggests that rents have risen since the last rental transaction of $3,600 per month in 2024.
However, on the co-living platform, the asking price for a standard bedroom in this condominium ranges from $1,400 to $1,850. This means that combining the rents of a standard bedroom and a master bedroom comes to between $4,050 and $4,500.
While anecdotal, this demonstrates the difference between renting out to a co-living operator and renting it out yourself. When renting out a single room, a co-living operator can command a higher rent and, even after taking their share, still earn you more than if you rented the room out yourself.
However, if you rent out the whole unit yourself, you may earn more, since the co-living operator would not be incentivised to match such a high rent, as their objective is to keep vacancy rates low.
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