After the COVID-19 pandemic devastated the world in multiple ways, the economic sector is slowly trying to revamp. Politicians, developers and monetary players have joined their hands to arrive at a positive consensus. It has resulted in an once-in-a-lifetime chance for converting hotels into affordable housing estates. If you look at the western world, you will see that the workforce population faces a devastating situation because of the pandemic. Their median income is not enough to cater to their expenses.
More so, the increase in expenditure in other related areas adds to their struggle with homelessness. These low-income renters form a considerable part of the community and are the only source of labor-power. Thus, it is not only a problem of the workforce population but every other section. In such a scenario, converting hotels into affordable housing has become a viable solution.
However, it is not a smooth process devoid of challenges. Property owners in general, and hotel owners in particular, are trying to discover policy options and relief mechanisms to facilitate the process. In such a scenario, a proactive role of the government and non-governmental agencies is desirable.
How to use the opportunity?
The hospitality industry was affected because of COVID-19. A large percentage of hotels were left vacant and with no source of income. Maxwell Drever states that if you go by hospitality research, you will understand that many hotel owners were on the verge of shutting down their properties. In this scenario, the conversion process of hotel rooms into affordable housing came as a good opportunity. Different executives and administrative chiefs understood the struggle of hotel owners with debt and revenue. Hence, the renovation process was the only way out.
What does it take to convert hotels into affordable housing?
Converting underused hotel rooms into affordable housing is a well-planned process. Proper planning and its due execution are necessary to cater to the issue. Various non-profit organizations have come forward to help hotel owners with a smooth cash flow. However, the first step is the purchase of the property. Suppose you are not an owner of a property and want to add to your resources; you have to look for an estate in and around the city.
Following this, you have to undertake the conversion process. You need approvals from the administrative agencies that will facilitate the task. Every state has local rules and regulations for the conversion process. Maxwell Drever reveals that you have to calculate your judgment if you want the groundwork to be profitable for you. Remember that the average cost of the conversion process is high. Hence, you need a smooth source of cash. For this, you have to approach financial organizations for loans and mortgages.
When converting single-room units, you have to make provisions for basic amenities. It is because a home-like environment is very different from hotel rooms. The team you are trying to create must provide the individual with a home-like feel. Moreover, the rent of the room must not be beyond the capacity of the occupant.
A proper balance of these different elements is necessary for converting hotel rooms into affordable workforce housing units. You have to think of the apartment from the perspective of the renter.