Convert hotel rooms to studio apartments?

Question

I am considering buying hotels and renovating to rooms (with mini-frige and microwaves) that I rent as hotel rooms on a monthly basis to low income women.

My thought is to provide this type of housing but avoid the nightmare of dealing with evictions and putting up with bad tenant behaviour until I can evict.

Since I'm targeting low income women, I"m not looking for terrific returns but I need to stay afloat and make a bit.

If you care to post comments, I would sincerely appreciate it!

Brandon West · Answer

I think that is a great idea! I also think you could make a decent return if the deal is worked out correctly.

I would say your first step is to "run the numbers"

So your thought is to buy a building that is currently a hotel? How many rooms?

What will the expenses look like? If you have a place in mind maybe you could see their current expenses.

What would the cost of renovating the rooms into what you would want. I am not sure what the law is on renting out a room with no kitchen for a long term rental. Maybe there is no problem at all. You will definetly have the costs of beds, mini-fridge, microwaves and other furnishings.

Will you provide a kitchen area? Maybe you could make a common area for the kitchen.

How will you manage this place will you do it yourself or have an employee.

What will be the price you set for these rooms?

Could this possibly be a section 8 deal?

I think these are important questions to figure out while you are calculating whether or not this is a viable business. I think that there is an increasing need for places like this nowadays and I am very excited to see where this idea takes you. Hopefully this helped.

Jeff Brower · Answer

You may want to read up on your discrimination laws prior to considering targeting a specific demographic for any type of rental.

Natalie Kolodij · Answer

Additionally, I'd imagine there being some type of zoning/classification to change a motel to permanent housing. Not sure- but that sounds like the biggest PITA to contend with.

Convert hotel rooms to studio apartments?

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