Everything you need to know about sharing accommodation in an apartment or Shop

If applied correctly, co-location Colocation is a profitable real estate strategy, and not only for investors: it is an advantageous way to buy an apartment or a shop in Lahore Sky.

With the inflation of the cost of living and the surge in real estate prices, students, young employees, seniors, and most single-parent families opt for shared accommodation to reduce expenses.

But what is colocation, and how does it work?

Definition of shared accommodation

The ALUR law of March 24, 2014, officially authorizes several people called tenants to rent real estate to share the costs relating to the lease and rental charges. This real estate, an apartment or a house, becomes their main residence where everyone has their room. The other rooms, such as the living room, kitchen, and bathroom, are shared.

In a shared accommodation, the residents are not necessarily people with family or friendly ties; they can be strangers deciding to live in a community.

Since the entry into force of the Macron law, married or civil partnership couples can no longer rent real estate under this regime: specific rules govern their case.

What are the conditions for sharing accommodation?

If you are considering getting into shared accommodation, you need to know its rules, especially regarding leases. It is possible to choose from the two existing contract types:

• A single lease is where tenants sign a single lease jointly with the owner.
• Multiple contracts where everyone signs their contract with the owner.

Learning the differences between these leases is important.

• Differences between a single lease and multiple contracts

In the case of a single lease, each tenant enjoys the same rights and is subject to the same obligations by a standard contract defined by law. They differ depending on the accommodation type, for example, whether it is a house or an apartment in a furnished or empty shared accommodation.

In the single lease, each roommate must participate in the inventory of fixtures at entry and ensure that they pay their share of the rent within the prescribed deadlines. When a solidarity and indivisibility clause appear in the contract, the lessor has the right to request the full rent or other rental charges from any inhabitant of the shared accommodation.

When one of the tenants moves out, and the unpaid rent falls on the remaining roommates, the latter can still be held responsible; in fact, the lessor can take action against him up to 6 months after his departure, as long as he has not been replaced on the lease contract.

In addition, the single lease does not authorize people who have left the shared accommodation to request reimbursement of the security deposit; in fact, the owner can only do so after the end of the contract, that is to say when the handing over of the keys to his property by the co-tenants.

In multiple leases, however, the departing tenant can directly benefit from the return of his security deposit. The remaining co-tenants must, however, know that the owner can choose a new co-tenant to replace him, and for this, he is not obliged to seek the agreement of the co-tenants.

The different types of shared accommodation

Given the shortage of housing in certain areas and the decline in purchasing power, many types of shared accommodation have emerged:

• a student shared accommodation;
• senior shared accommodation;
• shared accommodation for single-parent families
• Student roommate

Student shared accommodation is trendy in universities like Paris and Lyon: young students with low incomes prefer to group to live in the same accommodation. However, sharing accommodation is not always the consequence of budgetary insufficiency; some students simply adopt it for the pleasure and the atmosphere it provides.

In large cities like Paris, Lille, Lyon, Marseille, Toulouse and Rennes, it is easier to find an apartment for student sharing because of numerous offers; it is also easier to find roommates given the number of students present on site.

In medium-sized cities, a house is often the ideal solution for student sharing because it is, first of all, larger than an apartment; in addition, a house has the advantage of being independent, which is beneficial for revising in peace.

• Senior shared accommodation

Senior shared accommodation has long been a rental method offered in the real estate field; it had a dazzling success in Northern Europe before spreading to the rest of the continent. Today, senior shared accommodation is increasingly attractive to the French.

Instead of choosing an EHPAD, families prefer to accommodate the elderly in shared accommodation. One of the most convincing reasons remains the affordability of this alternative: the cost is more moderate for shared accommodation compared to an installation in a retirement shop.

Aside from the financial advantage, seniors choose this lifestyle to stay in contact with people outside the family because loneliness is not the best way to end one’s life.

• Shared accommodation of single-parent families

Raising children in a single-parent family can be financially complex, so sharing accommodation can reduce costs. Likewise, it allows children to live in a decent environment.

The advantages and disadvantages of shared accommodation

• For roommates

Co-living allows tenants to opt for a larger house or apartment. Even if the rent is higher, it is distributed between the occupants; in addition, roommates can share electricity or internet costs.

Living in shared accommodation can also be pleasant in terms of human relations: it is a way of meeting people for younger people. For seniors, shared accommodation allows them to have companionship for the rest of their lives. As for single-parent families, shared accommodation invites exchanges.

However, it can be difficult to accommodate other people’s lifestyles and habits; cohabitation can also generate discomfort, such as noise. Moreover, everyone’s programs may not match. Finally, the distribution of tasks such as cleaning or cooking can be a source of conflict.

• For the owner

The main advantage for the landlord lies in the price; he can afford to set a higher rent than the real estate market trend.

Landlords can also protect themselves from unpaid rent thanks to solidarity clauses: if one of the roommates fails to fulfill their obligations, the rest pay the total amount of the rent.

If the owner rents out part of his main residence, the income can be exempt from taxes; this is co-ownership.