Alcove is a technology-enabled property management company that operates a platform to convert existing housing supply into more affordable co-living properties. Their approach involves taking vacant multi-bedroom homes and converting them into "Shared Housing" units by offering per-bedroom leases with utilities, furnishings, cleaning, and insurance bundled together.
Through this model, Alcove aims to make housing more affordable for renters by optimizing the utilization of existing rental inventory to meet demand for smaller units like studios and one-bedrooms. Tenants get a better price per square foot ratio in these co-living homes. Roommates are matched through Alcove's platform prior to move-in.
For property managers, Alcove's solution helps increase occupancy by filling larger vacant units faster with qualified individual tenants. The platform creates new revenue streams from converting multi-bedroom properties into co-living spaces.
Alcove launched this model in 2020 to cater to the growing influx of young professionals in areas like the Raleigh-Durham region where new construction could not keep up with rapid population growth and rising rents. As of January 2020, there was around 6% vacancy representing over 8,000 rental units in that area that could potentially be converted to shared housing through Alcove's platform.
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