Five mistakes we see investors make with co-living - and how to avoid them. 1. Buying old stock and converting instead of building new. Conversions for us are like a pig with lipstick. Ageing structures hide expensive problems that are waiting to blow up one day. Build new. Best designs, optimised depreciation , highest rents etc 2. Underestimating management. 5–9 tenancies need professional operators, not a part-time landlord. Every real estate agent will tell you they can do it... they cant. 3. Chasing yield in the wrong suburb. Demand is EVERYTHING - location still rules. Keep using the foundations of property investing when selecting location. Close to jobs, close to infra etc 4. Ignoring the downside. If there's no guaranteed floor, you're carrying all the risk. Buying the wrong land with wrong overlays or zonings. We want frictionless planning approvals! 5. Trying to DIY the development. The learning curve is paid in years and dollars. Putting crappy furniture packages and getting suboptimal rents. The low cost (yet high value) finishes optimal rents and valuations! Most of these come down to one thing: treating co-living like a standard rental. It isn't! It's a development project and an operating business - which is exactly why we built Keystone to handle both.

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