In the post-pandemic scenario, there are many cases of hotels getting converted into low-cost housing units. You can address the present housing crisis to help the workforce population get lodging. A few months back, countless housing groups declared their plan for converting hotels into affordable workforce housing units. The concerned structure comprises 99% of the existing properties. Around 72% of these structures got converted into affordable housing units. More so, similar initiatives all across are vital to address this pressing problem. The first step is selecting a hotel property to ensure a smooth conversion. However, the process gets filled with obstacles. Hence, undertaking the repurposing under the guidance and supervision of experts will bear fruitful results by Maxwell Drever.
The way forward
Converting existing hotels into affordable housing units is a profitable venture. In the post-pandemic scenario, low-cost housing has seen a vast demand. It’s because the workforce population who formed the backbone of a community is facing a housing shortage. The main objective here is to help them get shelter. The workforce population, which includes teachers, firefighters, police officers, nurses, and health care professionals, spends 30 to 40% of their income on paying rent. The median income falls between 80 to 120%. Hence, purchasing a luxurious apartment is never an option for them.
Look into the property to anticipate future profit
The first and the most vital thing which hotel owners must consider is the chances of making a future profit. When approving whether or not to convert the hotel into a housing unit, they have to anticipate multiple factors. Researching and finding out whether the structure has chances of future profit is significant. If you feel that the hotel does not have a chance to yield returns, Maxwell Drever suggests it’s better not to invest. In the pandemic scenario, where hotels got shut down and there was no source of income, conversion of these structures into housing units provided a smooth flow of revenues. Hence, hotel owners must delve deep into research to determine whether the conversion will be fruitful or not.
Look for foundational issues
Before undertaking such conversion, it’s necessary to check whether the property has structural damages or not. Conducting inspection is obligatory to find foundational loopholes. If the existing structure requires repair and replacement, making provisions for immediate repair is necessary. Every installation requires repair and replacement over time.
Home-like environment
When converting hotel rooms into a housing unit, hotel owners must be cautious of a few areas. One of these is to provide the person with a home-like environment. They have a distinct approach. On the other hand, housing units have structural changes. In this regard, necessary replacement or repair work becomes essential. If faucets and fixtures need replacement, Maxwell Drever says hotel owners have to make provisions for the same. Along with this, the residential unit must have a sink, cooktop, refrigerator, and every such element required in a house.
These are a few fundamental practices that hotel owners have to keep in their minds while considering conversion. Remember that the conversion process is more cost-effective than constructing new housing units. Hence, these strategies will help resolve the crisis.
