Nathan Miller, founder and CEO of Rentec Direct, industry-leading property management software for real estate professionals.
I’ve been in the rental property business for more than two decades, and one thing has become increasingly clear: The traditional rental model isn’t as universal as it once was.
Historically, managing a rental property was relatively straightforward—one property, one household, one lease. But as housing costs rise and both owners and renters look for more flexible ways to make housing work, I’m seeing more arrangements that don’t fit as neatly into the traditional framework.
Alternative housing can take many forms. It might mean renting a property room by room, accommodating multiple generations under one roof, adding an accessory dwelling unit (ADU), offering furnished or flexible-term rentals or finding other new ways to use existing properties as affordability pressures change. ADU construction, as one example, has grown exponentially in recent years, with permits increasing by more than 1,000% over the last decade.
Shared housing is one particularly visible example of this shift. In 2024, 22% of the U.S. lived in a multigenerational household, up from 13% in 1970. Additionally, landlords renting out rooms in their own homes more than doubled between 2020 and 2025. In 2023, an estimated “6.8 million households shared their housing with unrelated housemates, roommates or boarders” in the U.S.
None of these models are entirely new. What has changed is the ways owners and renters are using properties—and the complexity of managing these alternative arrangements at scale. Property managers should be prepared for more variation in both properties and living arrangements, adapting their processes, technology and expertise as the housing market evolves.
Establish different systems for different arrangements.
Traditional property management systems aren’t necessarily built with every housing arrangement in mind. A property manager may need to manage a single-family rental with one lease and a shared property with multiple residents at the same time. Property managers should prioritize systems and technology that are agile enough to accommodate these differences without creating an entirely different process for every property.
Flexibility matters when managers are onboarding several residents at once, collecting individual payments under one roof, managing leases with different start and end dates or turning over one room while other residents stay in place. They might need to communicate with residents individually while also sending property-wide updates or track responsibilities that apply only to one resident within a household. The more varied the arrangement, the more important it becomes to have these details organized.
Not every property manager needs to specialize in co-living or alternative housing. Maybe that’s not the right model for your business. But every property manager should have systems in place that give them the flexibility to adapt as their portfolios and local markets change and the definition of a rental property continues to evolve.
Rethink the traditional rental model.
Traditional rentals aren’t going anywhere, but they are no longer the only model property managers need to be prepared for. As housing costs, shifting demographics and changing renter preferences continue to impact the market, owners will look for different ways to keep rental properties profitable—and property managers will be the ones helping them bring those arrangements to life.
The opportunity isn’t necessarily in predicting which housing model will take off next. It’s in building a property management business that can adapt as the market changes, support different types of properties and give owners the flexibility to respond to new opportunities when they arise.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
