Co living takes ordinary residential houses and lets them room by room, fully furnished, with bills and services included and a professional operator managing the whole. For investors it combines residential demand with active management.
Why Cambridge
Cambridge has a deep pool of young professionals, researchers and postgraduates, and very limited new housing supply. Demand for good quality shared homes is strong and rents are well supported.
How the model works
An investment platform sources houses, often in need of work
The houses are refurbished to a consistent, higher standard and licensed as HMOs
A specialist operator lets and manages them
Once let and stabilised, the properties are refinanced, returning part of the capital to investors
What investors should check
The operator's record on occupancy and tenant retention
Licensing and planning position in each street
Refurbishment budgets against actual costs
How the refinancing assumptions hold if rates move
We advised Panacap on raising capital for its Cambridge co living platform, operated by Babouris. To discuss co living investment, call James Innes on 020 7850 4760 or email james.innes@chrystalcapital.com.
This article is general information and is not advice.