What’s your take on SRO properties?

[Michael Belz]

I’m currently reviewing a fully occupied mixed-use commercial building with 8 SRO (Single Room Occupancy) units but have never dealt with this type of property before. The rents are collected weekly instead of monthly, so there are more rental periods each year, but I assume expenses may be higher as well.

Does anyone have experience with SRO real estate? I’m also curious if it's possible to convert these units into regular apartments, as this property is located in the NY suburbs. Any insights on increasing rents or updating the units would be greatly appreciated!