converting apartment buildings to co-living
What is wrong with converting apartment buildings to co-living buildings. You convert living rooms into additional bedrooms and make the overall rent more affordable for people that don't mind sharing a bathroom.
I went and looked at thehubhaus.com here in san jose, and they are rapidly expanding in the San Francisco bay area, with over 100 houses. Starcity.com has converted several downtown SF buildings and has a waiting list in the 1,000s. They are also expanding into Venice Beach in LA.
If you took a 5+ unit apartment and changed it into a co-living building. The maximum bathroom ratio is 4 to 1, so you could convert most living rooms to bedrooms. This would seem to be more profitable than regular rentals. What is wrong with this idea?