Everyone thought that the pandemic outbreak had only been about crisis and loss. But there is something good that comes out of every dark situation says Maxwell Drever. And the pandemic has proven to be so. Even though the pandemic has resulted in deaths worldwide, it has also resulted in new investment options in real estate. When leveraged correctly, these scopes can help enhance the affordable workforce housing supply and resolve the crisis somehow. However, things are not meant to change overnight.
Maxwell Drever says that the hospitality sector has been negatively affected by COVID-19. And with the active vaccination drive, the government has relaxed the multiple pandemic-oriented restrictions for speeding up the economic recovery initiatives. Hence, the hospitality sector can count on some positivity.
It is said that motels and hotels can take as much as three years to get into complete recovery mode. And that brings up the questions on survival. Hence, when these properties get converted into affordable workforce housing, it helps the hotel owners use their space somehow and get the best value in the current times.
The transformation of hotels into affordable workforce housing
Maxwell Drever considers himself a pioneer in the segment of affordable housing for a while. And to move over the challenges of developing affordable housing right from the start might involve the intervention of many agencies at a local, state, and federal level. And because most hotels come with a uniform structure, home amenities, and plans, there is a need for little modification to transform them into workforce housing. Also, the investments are less, which can help to keep the expenses lesser. As a result, property rentals can be something that middle-income families can afford and stay conveniently.
The reduced ownership expenses
Do you want to keep the costs less? If yes, then it is necessary to make sure that there is maximum utilization of the hotel space, which enables the developers to generate more living units which are way better in comparison to the affordable workforce housing for the ones who belong to the lower-earning bracket. However, the help of government subsidies might be necessary.
Other than the property developers and investors, even the architects play an essential role in assessing the property to understand the conversion scopes by maximizing the available space in the best way they can. All the efforts are useful as the rents get minimized by 20% through a logical conversion without making any great changes to the existing property.
The hotel construction, layout, and design have a similarity with the residential homes. And that is the reason why the investments and efforts for the conversion are lesser in comparison to developing new houses. It helps to remove the increased expense of construction materials.
Finally, it is essential to evaluate the property with an expert team of architects and developers to recognize the scope for a fast conversion. It also helps to decide the economic feasibility of the projects to develop low rental properties successfully.