How to Enter a New City as a Coliving Operator

Why Market Entry Strategy Matters

Entering a new city is the most capital-intensive and risky growth decision a coliving operator can make. Unlike adding another property in your home market (where you know the regulations, have vendor relationships, and understand demand), a new city is essentially starting over — with the advantage of your operational playbook but without local knowledge.

The operators who succeed in new markets are those who invest heavily in research before committing capital. This guide provides the framework for making that decision systematically.

City Selection Framework

Score each potential city on these criteria (1-5 scale) to compare options objectively:

Criterion	What to Assess	Data Sources
Remote worker population	Number of digital nomads, expats, remote workers	NomadList, expat forums, LinkedIn data
Demand signals	Existing coliving occupancy, waitlists, search volume	Google Trends, competitor research, operator interviews
Supply gap	Number of existing coliving beds vs potential demand	Direct research, listing platforms
Rental economics	Rent-to-revenue ratio potential (target under 55%)	Property listings, local agents
Regulatory friendliness	Licensing requirements, zoning, subletting legality	Local lawyers, operator networks
Quality of life	Climate, safety, infrastructure, visa access	Nomad scores, personal visit
Growth trajectory	Is the city growing or declining in your target demographic?	Immigration data, tech sector growth, university enrollment
Operational feasibility	Can you manage remotely? Is talent available locally?	Local job market, your network

Cities scoring 30+ out of 40 are strong candidates. Below 25, think twice. Research resources for specific markets include our guides to US markets and UK regulations.

Market Research Checklist

Before committing to a city, complete these research tasks:

• Demand validation: Join local expat and nomad communities online. Ask about housing pain points. Run a survey if possible.
• Competitor analysis: Identify every coliving, serviced apartment, and relevant hostel. Catalog their pricing, room types, occupancy (ask directly or estimate from reviews), strengths, and weaknesses.
• Pricing research: What do comparable coliving rooms rent for? What is the spread between market apartment rent and coliving pricing?
• Property availability: Are suitable properties available? What is the typical lease structure? How competitive is the commercial rental market?
• Seasonal patterns: Does demand fluctuate significantly by season? Some nomad hubs have 3-month high seasons and 3-month low seasons — this dramatically affects your financial model.
• In-person visit: Nothing replaces a 2-week boots-on-the-ground visit. Stay in competitor coliving spaces, meet local operators, view properties, and get a feel for the neighbourhood dynamics.

Regulatory Due Diligence

Regulatory research must happen before you sign anything:

• Subletting legality: Is subletting legal in this jurisdiction? Are there restrictions on the number of tenants per property?
• Licensing requirements: Do you need an HMO license (UK), alojamento local license (Portugal), boarding house registration (Australia), or similar?
• Zoning: Is residential multi-tenant use permitted in your target neighbourhoods?
• Fire and safety: What are the fire safety requirements for multi-tenant properties? (Fire doors, alarms, escape routes, extinguishers)
• Tax implications: Tourist tax (common in European cities), VAT on accommodation, corporate tax structure
• Employment law: If hiring locally, understand employment contracts, minimum wage, benefits requirements, and termination rules

Budget €2,000-€5,000 for a local lawyer to conduct a regulatory review before you commit to a property.

Property Sourcing in a New Market

Without local knowledge, property sourcing requires a multi-channel approach:

• Local real estate agents: Brief 2-3 agents on your requirements. Offer a finder's fee above standard commission for properties that meet your criteria.
• Online listings: Idealista (Southern Europe), Rightmove (UK), Zillow (US), and local equivalents
• Operator network: Connect with other coliving operators in the city. They often know of properties becoming available.
• Direct outreach: Identify suitable buildings (former guesthouses, large apartments, underperforming hostels) and contact owners directly
• Property management companies: Some property owners use management companies — these can be intermediaries to building owners

Building Local Partnerships

In a new city, partnerships accelerate everything:

• Local coliving or hospitality operators: Not competitors but potential collaborators — especially operators targeting different demographics or price points
• Coworking spaces: Cross-referral partnerships for residents needing workspace and members needing housing
• Relocation services: Companies helping employees relocate to your city
• Language schools and universities: Steady source of residents on 3-12 month stays
• Local government: Some cities actively court coliving operators as part of digital nomad or remote work attraction strategies

0-6 Month Market Entry Timeline

Months -3 to -1: Research Phase

• Complete market research checklist
• Visit the city for 2+ weeks
• Legal and regulatory due diligence
• View 10-15 properties
• Build initial local network
• Financial model for top 3 property candidates

Month 0: Commitment

• Sign lease or purchase agreement
• Register business entity (if new jurisdiction)
• Apply for required licenses
• Engage contractors for any renovations

Months 1-2: Setup

• Furnish and fit out property
• Install technology (locks, WiFi, security)
• Hire community manager (start 2 weeks before opening)
• Set up vendor relationships (cleaning, maintenance)
• Professional photography
• Launch website, GBP, and listing profiles

Months 3-4: Soft Launch

• First residents move in
• Intensive marketing push
• Daily operational refinement
• Community programming begins
• Gather first reviews

Months 5-6: Stabilization

• Target 80%+ occupancy
• SOPs refined for local context
• Marketing channels optimized based on data
• CM operating independently
• Monthly reporting integrated with portfolio

Remote Management Setup

If you are not relocating to the new city, remote management systems must be robust:

• Communication: Daily check-in with CM (15-min video call), weekly operations review (45 min)
• Monitoring: Real-time occupancy and revenue dashboard, security camera access, smart lock activity logs
• Quality control: Monthly property audit by a third party or your operations manager
• Physical presence: Visit in person at least every 6-8 weeks in the first year
• Escalation protocol: Clear guidelines for what the CM handles independently vs what requires your approval

Frequently Asked Questions

Should I visit a city before deciding to open a coliving there?

Absolutely yes. No amount of online research replaces a 2-week in-person visit. Stay in competitor coliving and hostels, use the public transport, eat in the neighbourhoods you are considering, view properties, and meet local contacts. The insights from a visit — neighbourhood feel, walkability, local culture, property quality — are impossible to assess remotely.

How much capital should I reserve for entering a new city?

Budget your full startup costs (deposit, furnishing, technology, marketing, legal) plus 6 months of operating expenses as a cash reserve. In Western European markets, this typically means €100,000-€200,000 for a 15-20 room property. Do not enter a new market with only enough capital for the startup — the ramp-up period always requires more cash than planned.

Can I run a coliving in another country without living there?

Yes, many successful operators manage properties remotely across countries. The requirements are: an excellent local community manager, robust technology systems, regular physical visits (monthly in the first 6 months, bi-monthly thereafter), and a local operations backup (either a team member or a trusted contractor). Remote management works but requires stronger systems than in-person management.

What is the biggest mistake operators make when entering a new city?

Assuming what worked in their home market will work identically in a new one. Every market has unique characteristics: pricing expectations, lease structures, regulatory requirements, cultural norms around shared living, and demand patterns. The most successful market entries start with extensive local research and adapt the proven playbook to local conditions rather than copy-pasting it blindly.