Short answer: Once a co-living property is built, running costs eat into the rent before you see a cent of profit. Based on general market data for co-living and rooming-house style properties, total running costs commonly land around 20% of gross rent. That leaves roughly 80% as the owner's operating income, before any mortgage or finance costs. The biggest single cost is management, which runs higher than on a standard rental. And that 80% figure holds up whether you self-manage, use an agent, or hand the whole thing to a head-lease company. These are general market figures, not a promise for any specific property.
The running costs nobody mentions upfront
Once a co-living property is built, the owner covers electricity and the council and government charges. If you use a property manager, you pay a management fee on top, same as any other investment property.
The real difference from a standard rental is who pays the utilities. Tenants come and go one room at a time, so the owner usually covers electricity, internet and the like, rather than billing each room separately the way a single-tenancy rental might.
What the numbers actually look like
These are general market figures for co-living and rooming-house style properties, not numbers off any single Auzzy project.
Management fees typically run 8% to 15% of rent. That's well above the 5% to 7% charged on a standard rental, and it's the largest single cost. Add utilities, insurance and maintenance, and total running costs commonly land around 20% of gross rent.
Do the math and roughly 80% of gross rent is what's left as operating income, before any mortgage or finance costs. Occupancy for this style of property commonly sits at 90% to 95%. One room empty out of five at any time is the normal pattern, not a red flag.
Self-manage, use an agent, or head lease it out
You've got three real paths once the property is built.
Self-managing or using a standard property manager gets you the roughly 80% figure above. You carry the vacancy risk and the day-to-day yourself, or you pay someone to do it.
The third path is a head lease. A company takes the lease off you directly, covers electricity and the related charges, and pays you a fixed weekly rent. You still cover insurance, rates and government charges, but finding tenants, vacancy risk and the management headaches become their problem. A head-lease company usually takes around a 20% margin for that, so you land at roughly the same 80% net either way. The percentage lands about the same. What changes is how much of the day-to-day you want off your plate.
If you're weighing up a build, our co-living page covers how we build to the co-living model, and a feasibility session is the place to pressure-test the numbers for your own site.
Auzzy Projects is a builder, not a financial adviser. Any mention of cash flow, gearing or returns is general information only — not financial advice. Please speak to a licensed adviser or our specialist partners about your situation. The percentages above are general market figures for co-living and rooming-house style properties, not a guarantee for any specific property.
Common questions
How much of the rent does a co-living owner actually keep?
Based on general market data, roughly 80% of gross rent after running costs like management, utilities, insurance and maintenance, and before any mortgage or finance costs. That's market context, not a promised figure for any specific property.
What's the biggest running cost on a co-living property?
Management fees, typically 8% to 15% of rent. That's higher than the 5% to 7% charged on a standard single-tenancy rental.
Is a head lease worth it for a co-living property?
It depends what you value. A head-lease company usually takes around a 20% margin, which lands you at roughly the same net return as self-managing. What it removes is tenant-finding, vacancy risk and management.
What vacancy rate is normal for a co-living property?
Commonly 90% to 95% occupancy. Around one room empty out of five at any time is the normal operating pattern, not a sign something's wrong.
Thinking about the numbers on your own site? A feasibility session costs nothing and puts real figures in front of you.
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