What Motivates Maxell Drever to Transform a Broken Hotel Into Affordable Workforce Housing
The Covid19 pandemic has opened new vistas in affordable workforce housing projects. More and more hotels are targets of real estate investors keen on converting the property into affordable housing, observes Maxwell Drever. It is an excellent opportunity to reduce the gap in demand and supply for affordable housing.
The Covid19 pandemic hardest hits the hotel industry as businesses have stopped indefinitely and maintenance costs are so high that it makes it extremely difficult to hold on to the property.Today, hotels are lucrative properties for investors keen on converting them into some other type of real estate to start earning from it.
The hotels and resorts have additionally been influenced radically. Nonetheless, something energizing has occurred in the midst of the confusion.
That is the change of the hotels into reasonable houses or asylums for the center pay gatherings. Thus, reasonable labor force lodging has now turned into the need of great importance.
Affordable housing projects are costly investments
Undertaking an affordable housing project right from scratch is a complex, long drawn, and expensive project that takes considerable time for investors to break even before that start earning profits.The investments are high too because of high land costs. Compliance with the various building and zoning rules makes it difficult to choose the ideal spot suitable for developing affordable workforce housing. Proximity to the workplace is one of the crucial factors for the workforce, and scarcity of land in prime places for building affordable housing projects often deter investors. As a result, the gap between demand and supply for affordable housing is increasing.
Hotel conversions are a better alternative
Converting hotels and motels into affordable housing makes the task much easier for investors. It cuts short the lengthy project time and paves the way for a quick investment return, confirming Maxwell Drever. Moreover, the project costs for the conversion of hotels into housing are much lower. Conversion projects for hotels into affordable housing are an eco-friendly choice that most citizens are ready to welcome. The severe blow of the Covid19 on in the hospitality sector has hit the hotel business so hard that more and more hotel owners are offering their property for conversions, which helps investors jumpstart the projects by choosing a hotel that matches their investment goals.
Partnering with the community
Investing in hotel conversions for developing affordable workforce housing is a different ball game because it requires developing strategies for gaining maximum outreach that helps address the community's needs and wants in better ways. Investors like Maxwell choose the local municipality as a partner in the project. It speeds up the implementation of the project by making the process of various compliances easier. The approach helps protect the investment as the municipality takes an active interest in ensuring adherence to the timelines for project completion. It also does away with many red tapes that investors would otherwise encounter while implementing the project.
The hotel conversions are much more cost-effective because remodeling is less expensive than new construction. The shorter completion times allow handling multiple projects at a time that benefits the investor and the workforce. The investor develops a long term relationship with the community that starts living on low rent, which always has been a dream that often remains unfulfilled.