Coliving operators have expanded their footprint steadily over the past few years, but now are trying to figure out how to navigate through the coronavirus pandemic.
CEOs of coliving companies Common and Quarters both stated they are expecting short-term challenges during this unprecedented time with tenants looking to break leases, but remain confident on their future growth prospects.
“It doesn’t change my view about coliving,” said Brad Hargreaves, CEO of Common. “The people who are dropping are not dropping because they got skittish about coliving, they’re dropping because they lost their job, they decided not to move or there was some fundamental change in circumstance.”
Out of the 2,000 residents across Common’s living facilities, Hargreaves has said about 20 have requested to break their leases, while 40 have asked about payment plans since they cannot afford rent for the month. Although the company is still charging a fee for lease breaks, it is providing more flexible payment plans for remaining tenants.
Common has also seen a drop in people signing new leases, but the provider is still offering virtual tours and the amount of applications coming through has stayed steady.
“Our occupancy as a company has been in the high-90s, we’re seeing a bit of a dip, but it’s still holding pretty high for us,” said Rui Barros, CEO of German coliving firm Quarters. “I do think our business model can weather a big downturn, and this is the mother of all downturns.”
Barros added that while the company does not have a set policy for flexible rent payments, it is working with tenants one-on-one and making decisions individually.
