Co-Living Rentals in Canada: Trend or Long-Term Strategy?

As Canadian housing affordability continues to decline—especially in urban hubs like Toronto, Vancouver, and Montreal—a new rental model has quietly gained momentum: co-living.

Co-living refers to multiple unrelated tenants sharing a furnished home with common areas like kitchens, bathrooms, and sometimes even services like cleaning or utilities included. While the model isn’t entirely new, its structure is evolving—and for real estate investors, it could represent one of the highest-yielding and most adaptable rental strategies today.

But is co-living just a passing trend, or a viable long-term strategy?

What Is Co-Living and Why Is It Growing?

Co-living is different from traditional roommate rentals in one key way: it’s intentionally designed and marketed to shared tenants. Landlords may furnish the space, offer flexible lease terms, and charge a fixed all-inclusive rent to simplify the living experience.

There are several forces driving its popularity:

• Affordability challenges: Younger renters and newcomers to Canada often can’t afford solo units.

• Urban densification: As housing stock becomes scarce, shared living helps maximize space.

• Lifestyle preference: Many Gen Z and Millennial renters prefer social, flexible, and low-maintenance housing.

  
  

For investors, co-living can be a way to double (or even triple) gross rental income compared to renting a unit to a single tenant or family.

The Numbers: Why Co-Living Works

Let’s say you have a 5-bedroom home in Hamilton. As a traditional rental, it might generate $2,800/month. Rented by the room at $850/month per tenant (all-inclusive), you could gross $4,250/month.

Even after accounting for higher turnover, utility costs, and minor furnishings, your net income is often significantly better—especially if the property is strategically located near universities, hospitals, or downtown cores.

What Tenants Want in Co-Living Homes

• Privacy within community: Lockable bedrooms and private bathrooms where possible

• All-inclusive pricing: One monthly bill for rent, internet, and utilities

• Furnished common areas: Move-in ready spaces add serious appeal

• Smart layouts: Multiple bathrooms and good flow help reduce friction

• Tenant compatibility: Professional tenant placement and house rules are key

  
  

Investor Considerations: The Pros and Cons

Pros:

• Higher cash flow potential

• Low vacancy when marketed well

• Increasing demand in urban markets

• More diversified rental income stream

  
  

Cons:

• Higher management demands (more tenants = more admin)

• Zoning and bylaw restrictions in some cities

• Compatibility issues among unrelated tenants

• Potential for higher wear and tear

  
  

Legal & Compliance Tips

Always check your local zoning bylaws—some municipalities restrict rooming houses or require special permits. It’s also smart to:

• Use individual leases per tenant

• Outline shared space responsibilities clearly

• Collect larger deposits or include cleaning fees

  
  

  

  
  

Final Thoughts

Co-living isn’t a short-term fad—it’s a response to a long-term market shift. As housing costs continue to rise and living alone becomes less attainable for many, shared housing offers a win-win: affordability for tenants and higher yield for landlords.

At Greenell Capital, we help investors structure and scale alternative rental models like co-living that align with future tenant demand and deliver real, sustainable returns.