State and central governments all across the globe are passing legislation to ensure better conversion of underused and vacant hotels into residential units. The present transformation trend is because of the lack of supply of housing units in the real estate industry. The increasing population of the workforce serving the society in different capacities requires safe residences near their job location. However, strict zoning rules and improper development of residential units introduce hardship in their lives.
Countries are completing their renovation projects to supply permanent and temporary housing for the workforce population. An assessment of land use policies will ensure that repurposing hotel rooms into the residential unit is a cost-effective way of catering to the workforce population. Since the market rate of land and residential units is mounting high, catering to the homeless individuals has no other way but to transform hotel rooms.
🖋 Why undertake hotel conversion?
The worldwide pandemic has taught individuals a worthy lesson: the significance of a house. In this scenario, state legislatures are passing new housing policies to fund the rehabilitation and purchase of distressed real estate properties to enhance and maintain the affordable housing supply.
Maxwell Drever anticipates that the legislation backed by governmental funding is available for every real estate investor working in this sector. Along with this, governments are removing restrictions on zoning rules along with housing codes. Hence, there will be an easy flow of money to help these projects accomplish fast.
🖋 What efforts are mandatory?
If you go by recent statistics, hotels located in city centers are a better alternative as residential units for the workforce population. They are easy to access and have various basic amenities to ensure that the tenants have a comfortable stay. As a result, hotel owners in the city centers must undertake the conversion process to address this critical issue of homelessness.
- Researching the real estate market and understanding the need of the hour is necessary.
- The lack of supportive and affordable housing is the current trend. Hence, increasing the repurposing of underutilized and vacant hotel space will ensure a better supply of the residential unit. Maxwell Drever asks readers to remember that affordable housing connects with labor availability. If better residences are in the city centers, you will have an easy workforce flow. As a result, hotel owners must pay attention to local building codes, rules, and regulations.
There are vocal supporters of transformation. They feel that empty hotels are the best option for affordable housing because it is a cheaper alternative. Trade councils and workers’ unions have tried to spread awareness regarding public safety issues in seminars and press conferences.
By transforming their operation, they are trying to reap the benefits of the correct legislation of the government and accessing the fund to ensure better conversion. Hence, governments can assure better returns through this conversion because every property will be under the housing tax.