collective live+work spaces
for people going places with purpose

candidate report
10 Republiquethe Cévennes, France 🇫🇷

A satellite location balancing a property offering great common spaces, a village with services and railway, some nice surrounding nature, but above all endless fantastic trips for varied adventures.

Boutique coliving rentals with investment offering over 25% net yield, with option of discounted use. About coliving investment →

In brief…

GOOD  🔨 effort
GOOD  🚌 transport
OKAY  ✈️ access
GOOD  🛒 shops
OKAY  🏙 towns
GREAT  🧗 activities
GREAT  ⛰️ nature
GOOD  ☀️ climate
GREAT  🌷 garden
GOOD  🏠 building
OKAY  ⛲️ hood
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The Locality

In the Cévennes on the edge of its expansive natural park at the border of the Gard and Ardeche departments, of France🇫🇷 — nestled at just 200m altitude where the hills rise up through winding river gorges to Mont Lozere at 1700m.

Regional Local

Attractors 👍

Detractors 👎

Access

Not great —despite actually decent transit— quite lengthy with several connections. Barcelona is easy if departing in the morning, thus an overnight stay required, same except early departures and much longer from London and Paris. Good choice of low-cost airports.

On foot

Nature

Climate

Fairly rainy so very green but a good number of days with only light cloud cover. Chilly winters getting a brief smattering of snow.

Towns

Activities

Attractions

The Property

~€230k capital expenditure · €80k/pa target revenue
320m² across 4 floors · 9 rooms · 4 pods · 10–16 occupancy
discounted use with shareholding

Spaces

Over 32% common spaces† fit out for purposeful live + work use, ensuring that even when fully occupied there's adequate room for everyone to get along well. †110m2 versus 160m2 accommodation, ex ancillary.

Offers a great layout having 4 distinct spaces, with contrasting moods/activities/uses for each. The lively and quiet areas are on the top and bottom floors to create distance between thus ensuring there's always somewhere to be quiet or lively. The ground floor can be divided, thus

Adaptability and moods

Common (110m²)

Accommodation (160m²)

9 ensuite bedrooms, 1 shared room with full-height pods. 4 unit classes with 4 price brackets.

3 rooms being suitable for couples . Rear rooms morning sunrise, front afternoon and sunset. Top floor has a decent view over houses to the hillside, the 2nd floor has a partial view of the top of the hills, 1st floor (pods, premium room) have none.

Pods are not double-stacked but full-height with 80x190 mattresses raised higher than typical giving plenty of storage below (plus above), recessed in a cubby with curtain, and just enough space to stand next to the bed and change. The 2 bathrooms are completely separated just across the hall, 1 having a bath and window with view.

Outdoors (225m²)

The kitchen is of course the hub of the house with access through to the garden, also functioning a way-stop and interaction point thus having a banquette nook to sit. With the casual workspace directly connected this will address the desire of people to be in the 'hub' of things without obstrutcting use. With a sliding partition for when cookups happen but folks are still working, yet not in the library.

Layouts

Ground
1st
2nd
3rd
outdoors

The Model

Hospitality rental business in the coliving sector, see the investment introduction.

Commercials

Net yield (on cost) at ~22%. Target revenue €90k/pa, 70k/pa during intial phase at discounted prices. Occupanccies at 70% mid season, 90% high, 50% low. 3 units retained, closed 2 months.

Minimum stay of 2 weeks with fixed arrival and departure days, avoiding hard-to-fill availability gaps whilst maximising occupancy. Alternate arrival and departure days would be permitted with temporary stay in a pod. Buses do not operate Sundays, therefore until the railway reopens changeover days would be Fridays or Saturdays (choice at booking; when a gap is created it will be used to facilitate cleaning scheduling, however not strictly necessary as with an average stay at 4 weeks only 2 rooms per week will need cleaning).

Competition

For competitive comparison refer to the investment introduction or compare on coliving.community.

There's no other colivings in this popular part of France, competing spaces are in the Alps (1 with excellent reputation), on the Cote d'Azur (2 ordinary), and in the Pyrenees (2).

Each will have a slightly different focus however this location might win for the transport and nice little town which neither the others have. This property will also be fitout specifically for coliving; one does have a very nice building, the other is a hotchpotch with nominal workspace.

Despite being in competition, this does not affect community and as one is 50mins drive meetups could occasionally be combiend half way somewhere, the other is nearly 2h but again half-way meetups possible.

Operations

Always present would be 2 volunteers having stipends and free accommodation whom will take the responsbilities of common space and room changeover cleaning (optionally weekly with charge), plus coordinating plans (weekly family meeting) and occasional driving for outings. They may offer cooking (charged).

The founder would often be present, and always specifically for training new volunteers at each changeover (typically every 3 months). The founder's room is retained as dedicated and not included in earnings. 1 pod is also not included to facilitate booking flexibility but may be offered as free accommodation for anyone effectively taking up a residency, giving talks, etc. Therefore effectively 4 units are excluded.

It is expected that the average stay will be one month, resulting in changeovers about one every 4 days, which given the rooms are mostly tiny, and common spaces efficiently laid out and fitted, is a fairly nominal amount of work between two.

Positioning

Balanced having good quality specifcation, designed for purpose, fitting neatly just above the average facilities. Most colivings whilst offering character, sit at the lower end of the market being poorly specified, whilst those that have invested do not have entirely adequate layout due to limited experience (e.g. just one 4-ring hob in a small kitchen for 24 people). There is no high-end offering as generally these guests have wider choice, nontheless there is demand.

The business will operate primarily on a rental revenue basis, however up to 30% of its capacity shall be available to owners to use at a significant discount, with durations proportional to their stake, for the lifetime of their shareholding.

Mutalised fractional co-ownership is no longer offered, yet may be reintroduced in future, exclusively on a membership basis and only to members whom have already stayed at a Hub House property. If support is adequate the business may be converted to a co-operative without negating commercial revenues.

The target rates are more representative of a lower sevice level, thus with good operations, the rates should be easily raised — thanks to the purpose-designed facilities, unlike most colivings which are very much ad-hoc often even the dining table or sofas don't fit everyone, and that's before considering proper desks.🤷

Whilst the location is not well known like Barcelona, Provence,… and amongst digital nomads is generally considered expensive versus Asia, yet it is no less interesting, especially for the more notable audience of remote-workers coming from European metros. So with good rental rates it should have excellent demand, not dependant upon digital nomads.

Seasonality

High would be 3 months mid June through mid September, low would be Dec and March, with a 2 month closure for Jan–Feb.

(More graduated pricing would be used to ease across seasons and reduce demand shifts from the changes.) A special xmas-nye program will terminate the season. Opening for a month around the ski season (early Feb) could be worthwhile, as this would thus be a very affordable work-ski destination, however is not really worthwhile yet there may be demand for longer stays during the season in which case it would be offered, yet revenue maybe negated by the operational costs.

Works

Phasing

  1. kitchen, shared bathrooms, pods, cells, workspace
  2. bedrooms except mezzanine used as provisional lounge
  3. construction of new lounge on rooftop, 2 mezzanine bedrooms
Would be easily phased, and will commence with only slightly more capital than for the acquisition. All will be overseen by the founder whom has undertkane a couple of renovations in France, accompanied by a seasoned decorative renovator.

Specifications

Functional and pleasant, avoiding budget chipboard aesthetic, making it appealing to return to! There'll be a few finishes that uplift, and things we won't skimp on are those that get used most, so solid wood kitchen surfaces and desks, good handles, hinges, taps, sockets, etc.

The ground floor has a very tall brick vulted cieling which would be stripped of paint to show its colour, under which IR heating panels and lighting will be hung, along with fans.

Existing decorative cement floor tiles will be retained provisionally but should ultimately be replaced where costs allow as is notable.

Building

Whilst a mundane boring building, as ever with a large floral/abstract mural across the facade and climbing plants it would be pretty impressive, the stairwell with its stone staircase could also be imposing and would accommodate some fetching full height decorations.

Lounge and casual workspace

A bespoke fitted curved sofa will be created, facing a section of wall for a large screen, yet retaining wide open floor space for games. Around the edges some desks. Floor would be best as sisal/seagrass (requiring frequent replacement), or oak with rugs.

Kitchen-dining

A bespoke fitted banquette along the wall below a window with a 4m+ dining table and chairs along the outer edge. Oak worktops. Shelving could be cheaper wood or even lacquered chipboard.

Ample fridge, and storage space on open shelving with removable wooden boxes, plastic containers in frdges. 2 primary stations yet that could support up to 5 working simultaneously. Simple reliable equipment such as stainless steel. 1 dishwasher could be adequate but an additional could be added. No convection heating (infrequent use), only IR panels, ambient heat will transfer from the lounge as the door will generally be open. A circulation system could bring warmer air from the roof down. Ultimately tomette flooring (red hexagon clay tiles); provisionally a hotchpotch a cement patched tiles.

Focus workspace

Coworking desks giving ~1.2m per person, having simple adjustable chairs, plus many built-in USB-C (PD) sockets so adapters don't need to be dragged around nor clutter the place. Some standing desks will be possible. Some plants. Should ultimately have an oak floor.

Library

Decorative seagrass, likely 3 chaise longue, bookcase and some trinkets.

Lounge

A wood stove for winter ambience. Would accommodate almost everyone somewhat tightly on sofas and armchairs around the wall, or more comfortably with beanbags as well, easily arranged for films on a large TV screen with surround sound. Enough open space for games on the floor and could also be used as a party room for some dancing, which being at the top end of the building away from most bedrooms on the opposite side would not be intrusive, same for the workspace. Outer walls will be insulated on the inside but only with thin woodfibre as not used throughout the day, for the same reason only double not triple glazing will be specified.

Bedrooms

Flooring will be seagrass, decorative in plus, some may retain floorboards. For improved acoustic damping walls will use 2x plasterboard plus wood fibre insultation, but not decoupled. Some rooms will gain wall insulation with woodfibre board simply painted over.

Bathrooms

Ensuites will have a sliding door, generally 80cm deep. Sink in front of the door, with shower and toilet to left and right in plus, but in standard .

All WCs will be equipped with a bidet nozzle/douche. Waste pipes will be external avoiding noise, but visible (possible to disguise with climbing plants). Each pair of rooms will have a low profile 60–80L hot water tank (suitable for 2 short showers) mounted in the hallway, boosted with instant heating elements, providing instant hot water plus coverage in case someone uses all the tank.

Ambient environment

The kitchen, main workspace and lounge with small speakers on a proper audio system (not silly home assistants), allowing lively gatherings across the ground floor with the lounge quiet, or vice-versa. A film could be being screened or lively game take place in the lounge and one would still able to work or read quietly in the library or workspace.

Whilst few of us are likely eco-warriors I beleive it's good to have a healthy environment, and as such it's desireable to reduce exposure to microplastics (artficial fibres), VOCs (foam mattresses), artificial perfumes, electrosmog, etc. Simple steps can be taken even with budgetary constraints, such as using natural materials for flooring, natural mattresses (keeping a few foam ones for those with problems), wool duvets and blankets, and of course natural cleaning products. Gentle lighting also has impact. Whilst office chairs could be an exception, they and sofas should be possible to easily re-cover with natural fabrics.

Tech

A professional system with multiple WiFi hotspots running on a dedicated power-over-ethernet backbone, using low power to reduce interference (and electrosmog). You'll be able to seamlessly roam around without loosing a connection or dropping a videocall. Somebody streaming video won't impact workspace bandwidth, plus the at-desk USB-C power will include an ethernet connection thus in most cases laptop users will be on a seamless wired connection.

The location has fibre so bandwidth will not be an issue.

We prefer local face to face interaction and as such activities and outings will be planned and written up on boards, however we shall also use an app to ensure everyone gets last-minute gathering and household notifications.

Heating and cooling

The house will be entirely electric, however attempts will be made to reduce resource use and consumption e.g. water tanks will be activated based on occupancy.

During low seasons, convection heaters will provide a base ambient temperature, whilst radiant infrared panels will be used to boost this in the kitchen and lounge. Bedrooms would only have convection.

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