The problem of homelessness is affecting the workers in different ways. The Covid-19 pandemic has increased opportunities for private businesses and governmental agencies to address the shortage of affordable housing. One of these opportunities is the conversion strategy for creating cheap and homely units for low-income groups. Some various localities and states have leased out areas in hotels for providing shelter to these individuals. Hence, different hotel owners convert their properties into permanent housing estates using state, federal, and local regulations. Apart from this, governmental agencies also give these property owners tax incentives to reduce the problem. However, the conversion process is not an easy one whether practically or politically, it requires a lot of planning and execution.
Ever since 2018, various households have been facing the problem of affordable and social housing. As a consequence, different authorities have come up with programs for addressing the crisis. Various federal governments are investing in these initiatives to increase the accessibility to affordable housing. Investors are taking dividends in these programs because it also adds to their revenues.
The conversion process
If you go by records, you will see that around 35% of hotels all across the globe got converted to affordable housing. They have signed contracts to lease out their rooms for homeless individuals. Various governmental officials are investigating these sites to convert them into permanent housing complexes. On another level, Maxwell Drever states that the government is also purchasing rooms in these hotels for providing temporary housing facilities to homeless individuals. Although the conversion is not a permanent one, it solves the problem to an extent.
The conversion process is a profitable one for hotel owners who are getting complementary revenues. All they need to do is make a few changes in the infrastructure and footprint, and that is all. Since there is a difference between housing and hotels, a little bit of planning is required. They have to provide the individuals with a home-like environment at an affordable price. These hotel owners are combining their efforts with governmental initiatives to offer individuals access to cheap houses.
Hotels and apartments get revamped
Only hotels do not get converted into affordable houses. Apartments are also being rented at an extensive level to deal with the problem. Since the issue has taken a global stance, the real estate industry has also solved the issue. According to Maxwell Drever, various governmental and non-governmental organizations are taking the help of tax initiatives and public policies to deal with the demand. It has added to the rental growth of apartments all across the globe.
Hence, the conversion process has added to the revenues and solved the problem. Various feasibility and analysis studies were conducted to understand the current scenario. Various development projects led to engaging in the right partnership and analyzing the profit.
They are determining the value of the property and partnering with specialists to come up with affordable housing. Various financial organizations are helping them with funding and assisting the investors in executing their skills.