Co-Living in Perth – A Case Study
In 2019 Celsius assisted an investor client establish The Tide, the first co-living offering in Perth. Purchasing the Sunmoon Resort at 200 West Coast Highway in Scarborough, the long-term plan was to develop the site for purpose-built, Build to Rent (BTR), but first, they wanted to test if this form of rental accommodation would be suitable in this location.
Celsius assisted with the project management of the substantial renovation required to transform the former hotel into a residential property. Working alongside the clients preferred builder, the refurbishment included –
- Converting the commercial Kitchen and restaurant into a share domestic Kitchen and Dining Room for Residents
- Creation of a We Work space providing residents with a place where they can work from home or call family/friends
- Creation of a communal Lounge Area with large TV providing a place for Residents to come together and watch movies, play games, socialise
- Each room was updated and those without a Kitchen had a fridge and microwave included
On completion, The Tide was able to offer 45 rooms, ranging in size and specification. Some rooms incorporated a Kitchenette with cooking facilities whilst the remainder had a microwave and small fridge as a minimum. The rooms, alongside the shared living spaces, was an enticing rental opportunity for Residents and able to meet a range of different needs in the market.
In addition to assisting with the property renovation, the Celsius team were also involved with the development and creation of other key elements required to launch and manage the co-living property including –
- New website showcasing the various room types and facilities at The Tide
- Marketing Schedule for the property launch and ongoing enquiry for leasing
- Creating the Co-Living lease agreement and navigating the requirements for the property and tenants
- Establishing reporting systems for the Owners
- Arranging routine maintenance service agreements for various building assets
- Assisting with budgeting and business planning
The Tide has been operational now for over five years and has been a great success. Currently offering lease terms from 1 to 3 months, the rooms start from $475 per week including utilities and Wi-Fi. Whilst originally it was anticipated that The Tide would suit the millennial demographic, over the years, it has been proved to appeal to a much wider group including young professionals, travellers, those relocating from interstate, FIFO workers etc.
As an asset, The Tide has remained stable from an occupancy standpoint operating at an average 95% occupancy over the past 3 years (post-COVID). During this time, we have also experienced an average increase in rent of 30%, which have started to stabilise over the past 6 months. In saying this, the current level of enquiry remains at an average of 100 contacts per months and the vacancy between tenancies averages around 5 days. Due to the competitive rental price structure, well connected location and community feel, we feel the current operational success can be sustained well into the future.
The Tide has been a great success for our client and Celsius, instilling confidence for future opportunities to recreate a successful co-living/build to rent model in Perth. If you have a housing concept or opportunity you feel Celsius could assist you with, give us a call and ask to speak to Kylie W.