Do Rentals Make Sense for Senior, Elder Cohousing?
Rentals for Senior or Elder Cohousing
There are several advantageous ways seniors can use rentals in their cohousing community.
Some seniors ask, "Are rentals a source of income or a growing burden?"
Do rentals make sense for senior or elder cohousing?
Rentals can certainly be a source of income and possibly even pay the expenses of the common areas and property.
Yet, ask any landlord and you will find out that they can also be a large burden–and rentals are not always profitable.
In addition, some of the profit landlords enjoy is property or rent appreciation over a period of time.
Is property appreciation a goal of seniors?
If it is a goal, is there enough life expectancy for seniors to realistically expect appreciation to be part of their profit? What happens in the meantime?
This website presents some very basic information and questions about rentals. Senior cohousers can start here but should plan to study this situation extensively from outside sources before deciding if it makes sense to become a landlord.
Most senior cohousing is one-story. Yet it is cheaper (per square foot) to build a two-story building (one roof, one foundation) and certainly it is better use of land. In senior cohousing, the top story could be rented or used in later years to house a care giver.
There is a trend in construction now to build retail or office rentals into the housing community–possibly facing the street in front of the houses or on the bottom floor of a multi-story building.
The common house of a senior cohousing community should be one-story unless elevators are included. However, the second story of the common house could be used for rentals now and housing for care givers, a cook, or a chauffeur in coming years.
What happens if rental property is included and management becomes a burden?
A common solution is to hire a property manager. Good property management is pretty much available anywhere.
What happens if retail rentals are included and they are not renting… or property management is not a viable option?
Note: The opinions expressedherein are exclusively those of the writers or other participants and do not necessarily reflect theposition of CyberParent. They are not intended to take the place of advice of ahealth, legal, or other professional whose expertise you might need to seek.